President Donald Trump’s $400 million White House ballroom project is receiving a donation of foreign steel from ArcelorMittal, a Luxembourg-based steel producer, according to sources familiar with the arrangement. The steel, valued at approximately $37 million, was reportedly produced primarily in Europe, where much of ArcelorMittal’s operations are located.

This development contrasts with Trump’s longstanding advocacy for the U.S. steel industry, including the implementation of substantial tariffs on imported steel and aluminum aimed at bolstering domestic production. The use of foreign steel in a high-profile project at the White House has raised concerns among U.S. steel manufacturers and labor unions who have supported the president’s trade policies.

Trump publicly acknowledged the donation during an event for major donors to the ballroom in October, describing the steel as “great quality” and emphasizing that the project’s costs would not be borne by taxpayers. He noted that various companies, including technology and cryptocurrency firms, had pledged contributions to fund the ballroom’s construction, with U.S.-based Carrier providing air conditioning equipment. However, he did not publicly identify ArcelorMittal as the steel donor.

Shortly after Trump’s announcement, the White House issued a proclamation adjusting tariffs that could specifically benefit ArcelorMittal. The adjustments included a provision allowing the Commerce Secretary to reduce tariffs by up to 50% for steel and aluminum producers operating facilities in Canada or Mexico that supply U.S. automakers. ArcelorMittal operates automotive steel plants in Canada and has committed to expanding a facility in Alabama, potentially qualifying it for this exemption.

A White House official, speaking anonymously, rejected suggestions that the tariff changes were linked to the steel donation, describing any connection as “tenuous.” The official also emphasized that no company had yet received tariff exemptions under the new provisions and that benefits would extend to multiple producers.

U.S. steel industry representatives expressed disappointment with the use of foreign steel in the White House project. Brandon Farris, executive vice president of the Steel Manufacturers Association, highlighted the domestic industry’s resurgence following the tariffs and asserted that American steelmakers could supply the high-quality materials needed for the ballroom.

ArcelorMittal, one of the world’s largest steel producers, operates facilities globally, including in Brazil, Canada, Europe, and the United States. The company completed an acquisition of an Alabama plant last year, producing steel used in electric vehicle motors, and maintains operations such as an iron mine in Minnesota. A White House spokesperson noted that despite ArcelorMittal’s foreign origins, its U.S. ventures contribute to the domestic economy.

The company’s chairman, Lakshmi Mittal, an Indian-born billionaire, has been a known supporter of Trump and praised the administration’s trade actions. Tariffs have raised the cost of steel imports to the U.S. but have simultaneously increased global steel prices, benefiting ArcelorMittal’s broader business. Meanwhile, Mittal has advocated for similar trade protections within the European Union.

The use of foreign steel for a landmark White House project underscores the complexities and contradictions inherent in trade policy and industrial support amid ongoing global economic interdependencies.