U.S. President Donald Trump on Friday touted a “planned partnership” between Nippon Steel Corp. and United States Steel Corp., saying it would create at least 70,000 jobs and deliver a $14 billion boost to the world’s biggest economy.
A White House official said Trump’s post on social media suggested he had approved Nippon Steel’s plan to acquire U.S. Steel, despite Washington’s concerns that the deal could heighten national security risks.
Both steelmakers issued statements welcoming the reported decision, which came after a panel of federal agencies screened the buyout plan in a review that began last month at Trump’s request.
Combined photo shows the logos of Nippon Steel Corp. (top) and United States Steel Corp. (Kyodo) ==Kyodo
“After much consideration and negotiation, U.S. Steel will remain in America and keep its headquarters in the great city of Pittsburgh,” Trump said.
He also said the bulk of the investment by Nippon Steel will occur over the next 14 months.
Nippon Steel said in its statement that it “applauds” Trump’s “bold action to approve our partnership with U.S. Steel,” adding, “We share the Trump administration’s commitment to protecting American workers, the American steel industry, and America’s national security.”
“The partnership between Nippon Steel and U.S. Steel is a game changer — for U.S. Steel and all of its stakeholders, including the American steel industry, and the broader American manufacturing base,” the Japanese producer said.
In a separate statement, U.S. Steel said it “greatly appreciates President Trump’s leadership and personal attention to the futures of thousands of steelworkers and our iconic company.”
The Committee on Foreign Investment in the United States first conducted a review of the acquisition plan under former President Joe Biden after the two steelmakers announced the deal in December 2023.
Biden issued an order in January to block the deal, citing national security grounds, after the committee failed to reach a consensus.
While welcoming investment in U.S. Steel, Trump expressed opposition to Japanese ownership. He told the committee last month to reexamine the proposed deal.
The potential acquisition by Nippon Steel, the world’s fourth-largest producer in the latest tally by the World Steel Association, of the iconic but struggling American steelmaker, the 24th largest, was an issue during last year’s U.S. presidential election.
Biden had aligned with the leadership of the powerful United Steelworkers union to voice opposition to the sale of the producer headquartered in Pittsburgh, Pennsylvania, a key battleground state in the race for the White House.
The Republican Trump, who won the election, was also against the sale. He had since said that Nippon Steel acquiring a minority stake in U.S. Steel would not cause any issues, but foreign ownership of the company would not be good psychologically.
The issue has also become a bilateral diplomatic matter, with Trump and Japanese Prime Minister Shigeru Ishiba, who took office last October, discussing the acquisition plan during their first in-person summit in February in Washington.
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AloJapan.com