U.S. President Donald Trump announced on Friday that he will increase tariffs on steel imports from 25% to 50% next week, as global markets continue to experience uncertainty and volatility due to new U.S. trade policies.

Speaking to steelworkers in Pennsylvania just days after a major $14 billion investment by a Japanese steel company in a U.S. steel firm, Trump stated that doubling the tariffs would further strengthen the American steel industry.

In February, Trump had signed an executive order imposing blanket 25% tariffs on all U.S. steel and aluminum imports without exemptions. Steel serves as a fundamental component in most industries - from automobiles and household appliances to massive infrastructure projects like skyscrapers, oil platforms, pipelines, bridges and roads. Aluminum is equally vital for food/beverage cans, aircraft, vehicles, and critical infrastructure like high-voltage power lines.

The U.S. consumes tens of millions of tons of steel and aluminum annually. These tariffs may increase production costs across numerous goods as both imported and domestic steel prices rise. Aluminum manufacturers may also raise prices due to reduced competition from lower-priced imports.

Last week, Trump announced a "planned partnership" where the Japanese steel company would invest in (but not acquire) U.S. Steel, following controversy over a potential foreign takeover.