Trump Welcomes Nippon Steel into $14.1B US Steel Alliance

Trump Signals Conditional Support for Nippon Steel’s $14.1 Billion US Steel Acquisition, Paving Way for Major Industry Shakeup

Historic Shift as Foreign Investment Poised to Revitalize US Steel Amid Regulatory and Political Challenges

US President Donald Trump has issued a qualified endorsement for Tokyo-based Nippon Steel’s $14.1 billion acquisition of US Steel, reframing the deal as a “partnership” that could rejuvenate a struggling American industrial giant and inject billions into the US economy. The announcement—made via Trump’s Truth Social platform—follows months of regulatory scrutiny and political opposition, and marks a potential turning point in US industrial policy, as reported by the Wall Street Journal.

Trump’s comments underscore a significant policy shift by suggesting openness to foreign operational control combined with American oversight, although final terms remain unclear and under negotiation with the White House.

Highlights:

• Trump calls the alliance a job creator with 70,000 new jobs and $14 billion in investments over 14 months.

• US Steel headquarters to remain in Pittsburgh.

• Nippon Steel to have operational control with a US-majority board and federal regulatory oversight.

• A national-security agreement detailing investment and regulatory conditions expected soon.

Deal Terms Still Fluid Despite Trump’s Green Light

Although Trump’s backing signals momentum, key deal specifics remain unsettled. Both US Steel and Nippon executives are seeking clarity from the White House on the extent of Nippon Steel’s ownership rights, as the “partnership” language introduced ambiguity on Friday.

Under the current framework, Nippon Steel would establish a standalone board for its North American operations composed mainly of US citizens and subject to federal regulator oversight. Commitments include substantial investments in Indiana steel mills, facilities near Pittsburgh, and construction of a new steel mill at an undisclosed location.

A formal national-security accord specifying conditions and regulatory requirements is anticipated to be signed within weeks.

Highlights:

• Nippon Steel’s operational control coupled with US-majority board governance.

• Commitment to major investments and new mill construction in the US.

• National-security deal under finalization.

Trump’s Reversal: From Opposition to Conditional Approval

Trump’s endorsement represents a sharp pivot from earlier opposition by both himself and former President Joe Biden, who had raised concerns about foreign ownership of a critical US industry. Biden initiated efforts to block the deal in January before leaving office. Trump reversed course following a second national-security review concluded by the Committee on Foreign Investment in the United States (CFIUS) in April.

Trump framed the deal with populist rhetoric, stating: “For many years, the name ‘United States Steel’ was synonymous with greatness, and now, it will be again.” He is scheduled to hold a campaign-style rally at US Steel’s Pittsburgh plant on May 30, further emphasizing the political significance.

Highlights:

• Both Biden and Trump initially opposed the acquisition.

• Trump’s reversal came after a second CFIUS review.

• Trump emphasizes job creation and industrial revival in his messaging.

Market Reaction and Union Resistance Pose Mixed Signals

Following Trump’s statement, US Steel’s stock surged over 21% to $52.01, approaching Nippon Steel’s $55-per-share offer. Meanwhile, competitors such as Cleveland-Cliffs and Steel Dynamics, who lost out on the bid, saw their shares decline.

However, the United Steelworkers (USW) union remains strongly opposed, citing Nippon Steel’s history of importing cheap steel that could threaten US jobs and production capacity. USW President Dave McCall warned that Nippon’s track record of “breaking trade laws” raises concerns about further erosion of domestic steelmaking.

To mitigate labour opposition, Nippon Steel pledged to honor existing labour contracts through 2026 and commit to no layoffs or plant closures during that time.

Highlights:

• US Steel shares jumped significantly post-announcement.

• Union opposition remains a major hurdle due to Nippon Steel’s trade practices.

• Nippon Steel commits to labour stability for at least five years.

Strategic and Industrial Implications of the Proposed Partnership

For Nippon Steel—the world’s fourth-largest steel producer—the acquisition aligns with a broader strategy to counter declining domestic demand in Japan and expand its global footprint. For US Steel, the deal offers a lifeline after years of underinvestment and industry headwinds.

While Trump’s conditional approval is not a final regulatory clearance, it positions Nippon Steel as the preferred bidder and accelerates the timeline for a potential closing before the June 18 deadline.

If finalized, this partnership could become one of the most consequential industrial deals of the decade, reshaping the US steel sector, challenging bipartisan apprehensions about foreign ownership, and establishing a new precedent for foreign investment in strategic American industries.

Highlights:

• Acquisition key to Nippon Steel’s global expansion and market diversification.

• Provides US Steel with critical capital and operational support.

• Potential to reshape US industrial policy toward greater acceptance of foreign investment.