US President Donald Trump has announced that he will double the existing 25 percent tariff on steel and aluminum imports to 50 percent. The decision will take effect from Wednesday, the British media outlet BBC reported.
Speaking at a rally in Pittsburgh, Pennsylvania, Trump said, “This decision will revitalize the US steel industry, reduce dependence on China and strengthen national security.”
He also said that a partnership between US Steel and Japan’s Nippon Steel will invest $14 billion in steel production in the area.
However, he later told reporters that he had not yet seen or approved the final draft of the agreement.
Trump also said at the rally, “There will be no layoffs, no outsourcing, and every American steelworker will get a $5,000 bonus.”
However, there was a major concern among workers about the US-Japan trade agreement—how Japan would honor the agreements made with the workers’ union. This organization looks after the issues related to workers’ wages and employment.
Trump said that he had “protected” the US steel industry by imposing a 25 percent tariff during his first term as president in 2018. This time it is being raised to 50 percent.
“We will make Pennsylvania steel the backbone of the United States again,” he said.
The US steel industry has been in decline for more than a decade as China, India and Japan have emerged as the world’s top steel producers. The US currently imports about a quarter of its steel, most of which comes from Mexico and Canada. This dependence is one of the reasons for Trump’s dissatisfaction.
Jojo Burgess, a member of the United Steelworkers Union and Mayor of Washington, D.C., who was present at the Pittsburgh rally, welcomed the announcement, saying, “I’m not a Trump supporter, but I’m for anything that moves the American manufacturing industry forward.”