President Donald Trump informed us on Friday that he would double the tariffs for steel imports to 50%.
“We will bring it from 25% to 50%, the tariffs on steel to the United States of America,” said Trump during the comments by Us Steel von Irvin in West Mifflin, Pennsylvania. The president said the steep tariffs would “further secure the steel industry”.
“With 25%you can somehow in the back,” said Trump. “With 50%you can no longer get over the fence.”
The new import duties begin on June 4, the president about the social truth.
Trump delivered US steel, after pointing out last week that he would extinguish a controversial fusion with Japan's Nippon. Investors and union members listened to the president's answers in which structure the deal is required, although it provided only a few additional details.
Trump said Nippon had undertaken to keep us in full for at least a decade. There will be no layoffs and “no outsourcing” on the basis of the deal, the president said. US steel workers receive a bonus of 5,000 US dollars, he added.
Trump avoided the deal as a fusion and instead to describe it as a “partnership” in a contribution on May 23 in his social media platform. The President said that US Steel headquarters would stay in Pittsburgh and Nippon would invest $ 14 billion in the more than 120-year-old American industrial icon over 14 months.
Us Steel described the deal as a “fusion” in which he becomes a “mainly obsessed subsidiary” by Nippon Steel North America, but, according to a submission on April 8, will continue to be operated as a separate company at Securities and Exchange Commission.
Trump said reporters on Sunday that it is an “investment, it is partially ownership, but it is controlled by the United States”.
Sources that are familiar with the matter said David Faber from CNBC that Nippon is expected to close US steel at 55 USD per share. Biden blocked the proposed acquisition of Nippon for national security reasons and argued that it would endanger critical supply chains.
But Trump ordered a new review of the deal in April and alleviated his former opposition to Nippon, who bought us Steel. The President announced the day after the committee for foreign investments in the United States (CFIUS), which should conclude his review and make a recommendation as to whether the companies had found ways to “reduce national security risks”.
“National security agreement”
Pennsylvania's senator, Dave McCormick, told CNBC on Tuesday that the US government would have a “golden share” that enables him to choose a number of board seats. Us Steel will have an American CEO and a majority of the board will come from the US McCormick.
“It is a national security agreement signed by the US government,” McCormick told CNBCS “Squawk Box”. “There will be a golden share that essentially will require the approval of a number of board members of the US government and which will enable the United States to ensure that the production levels are not reduced.”
The “golden proportion” would probably not compete in the form of an equity part of the US government, said James Brower, partner of the law firm Morrison Forrester. The committee, which has checked the deal, Cfius, does not negotiate any participations, said Brower.
Contract law for the US government would probably start making a veto a veto into veto with certain measures, said Brower, who has represented customers in connection with CFIUS.
Nippon will “certainly have members of the board and this will be part of their entire corporate structure,” McCormick told CNBC. Peter Navarro, the trade advisor of the White House, told the reporters on Thursday that “Nippon Steel will have a participation, but no control over the company”.
“Us Steel has the company,” said Navarro. The US sales representative Jamieson Greer told CNBC on Friday that the details of the Nippon Steel deal “remain relatively confidential”.
“The underlying principle is that the United States should have control over important critical sectors, regardless of whether it is a fundamental production or high -tech,” said Greer to “Squawk Box”. “In the event that foreign countries or foreign persons or companies acquire these companies or have large investments, the United States must keep control of things that are important.”
The United Steelworkers, who were originally against the deal, said that the union cannot speculate “about the effects” of Trump's announcement “without further information.
“Our concern is that Nippon, a foreign company with a long and proven success story to violate our trade laws, further undermined domestic steel manufacturing capacity and endangered thousands of good union jobs,” said the President David McCall in a statement.
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