U.S. President Donald Trump said on Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25%, ratcheting up pressure on global steel producers and deepening his trade war.
"We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50% - the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he said at a rally in Pennsylvania.
The doubling of steel and aluminum levies intensifies Trump’s global trade war and came just hours after he accused China of violating an agreement with the U.S. to mutually roll back tariffs and trade restrictions for critical minerals.
Trump announced the higher tariffs just outside Pittsburgh, where he was talking up an agreement between Nippon Steel and U.S. Steel. Trump said the $14.9 billion deal, like the tariff increase, will help keep jobs for steel workers in the U.S.
He later posted on social media that the increased tariff would also apply to aluminum products and that it would take effect on Wednesday.
Shares of steelmaker Cleveland-Cliffs (NYSE:CLF) Inc surged 26% after the market close as investors bet the new levies will help its profits.
The announcement drew harsh reactions from U.S. trading partners around the world.
Canada’s Chamber of Commerce quickly denounced the tariff hike as "antithetical to North American economic security."
