President Donald Trump on Friday told US Steelworkers that he would double the tariff to 50%on steel imports.
“We are going to bring it from 25% to 50%, tariff on steel in the United States.” The President said that the standing tariff “will further secure the steel industry.”
“At 25%, they can finish that fence,” Trump said. “At 50%, they can no longer exceed the fence.”
The new import duty will start from June 4, the President posted on Truth Social.
Trump was commenting in American Steel after indicating last week that he would clean a controversial merger with Japan’s nippon. Investors and union members were listening to the President’s reply to what the deal would structure, although they brought very little in the way of additional expansion.
Trump said that the nippon has committed us to keep steel blast furnace for a decade for a decade. The President said that there will be no retrenchment due to the deal and “no outsourcing”. He said that US steel workers would get a bonus of $ 5,000.
Trump has avoided merging the deal, describing it as a “partnership” instead of “partnership” in his May 23 post on his social media platform Truth Social. The President said that American Steel would be headquartered in Pittsburgh and Nippon would invest $ 14 billion in 14 months in the US industrial icon over 120 years old.
The US Steel called the deal “merger”, in which it will become a “full -ridden subsidiary” of Nippon Steel North America, but will continue to work as a separate company, according to the filing with the Securities and Exchange Commission on 8 April.
Trump told reporters on Sunday that the deal is a “investment, it is a partial ownership, but will be controlled by the USA.”
Sources familiar with the case told CNBC’s David Faber that Nippon is expected to shut down its acquisition of US Steel at $ 55 per share, the original offer was rejected by the Japanese Steelmaker in January by the Japanese Steelmaker who was the deal before the biden. Biden blocked the proposed acquisition of the nippon on national security basis, arguing that it would endanger the significant supply chains.
But Trump ordered a new review of the deal in April, which softened his previous opposition to purchasing American Steel. The President announced a “partnership” of the committee on foreign investment in the United States (CFIUS), which was to conclude its review and a recommendation on whether companies had discovered “ways to” reduce any national security risks “.
‘National Security Agreement’
Pennsylvania Sen Dave McCormic on Tuesday told CNBC that the US government would have a “golden share” that would allow it to decide on several board seats. The US Steel will have an American CEO and the majority of the board will come from US McCormic.
“This is a national security agreement that will be signed with the US government,” McCormic explained the “Squalk Box” of CNBC. “There will be a golden part that will essentially require the government’s approval of several members of the US government and which will allow the United States to ensure that the level of production is not cut.”
The possibility of “Golden Share” will not take the form of an equity stake by the US government, James Brover said, “Law firm Morison Forester’s partner of the Faizer Department of Forester.” The Committee reviewing the deal, CFIUS, does not interact on equity interests, Browver said.
This will probably take the form of a constructive right to vetoons some tasks for the US government, the Brover who has represented customers on issues related to CFIUS.
McCormic told CNBC that Nippon “would definitely be members of the board and would be part of their overall corporate structure.” White House business advisor Peter Navaro told reporters on Thursday that “Nippon Steel is going to have some participation, but the company has no control.”
“The owner of the US Steel Company,” said Navarro. US trade representative Jaimison Greer on Friday told CNBC that the details of the Nippon Steel Deal remain “confidential, relatively”. ,
“The underlying theory is that the major important areas in the United States should be controlled, whether it is basic manufacturing or high -tech,” Greer explained the “squalk box”. “In the event that foreign countries or foreign individuals or firms want to get these companies or have large investment, America will have to maintain control over things that matter.”
The United Steelworkers, who originally opposed the deal, stated that the Sangh cannot speculate about “the impact of” Trump’s announcement “without more information” effects. “
“Our concern is that a foreign corporation with a long and proven track record to violate our business laws,” USW president David McCal said in a statement, “will further increase the domestic steelmaking capacity and threatened thousands of good, union jobs.”
