President Donald Trump announced a partnership between U.S. Steel and Japanese steelmaker Nippon, which he says will keep the company’s headquarters in Pittsburgh and bring $14 billion in investment to the US economy.
“This will be a planned partnership between United States Steel and Nippon Steel, creating at least 70,000 jobs and adding $14 billion to the US economy. “The majority of that investment will take place in the next 14 months,” Trump wrote on TruthSocial on Friday.
Trump plans to visit the steel plant next Friday for a “BIG rally,” he said.
However, Trump’s post provided few details about the agreement, such as whether it is a partnership rather than an acquisition and how much control will remain with U.S. Steel.
Former President Joe Biden vetoed the $14.3 billion acquisition during his final week in office. The deal has been contentious since it was first announced in December 2023, with both sides of the political spectrum opposing foreign control of a once-important component of US industrial might that has fallen on hard times.
Trump found rare agreement with Biden when he began his term opposing an outright deal. “I do not want foreign countries to own US Steel. “All they can get is an investment,” Trump stated.
However, in March, the Trump administration indicated that it may allow the deal to proceed after filing a motion to extend two deadlines in a lawsuit filed by U.S. Steel and Nippon Steel against the Committee on Foreign Investment in the United States, which examines foreign investments for national security risks.
CFIUS began reviewing the acquisition in April and made a recommendation to Trump on Wednesday about whether any of the measures proposed by the companies would mitigate national security risks, according to Reuters. Nippon increased its investment pledge in US Steel’s operations to $14 billion, including a new $4 billion steel mill in the United States if its bid is approved, according to Reuters.
US Steel was once a symbol of American industrial might, when it was the world’s most valuable company and the first to be worth $1 billion, shortly after its founding in 1901. It was also critical to the US economy and the tangible indicators of that strength, such as cars, appliances, bridges, and skyscrapers.
However, it has experienced decades of decline since its post-World War II peak. It is no longer the largest steelmaker in the United States, and it employs only 14,000 people, 11,000 of whom are members of the United Steel Workers union. However, politicians who enjoy talking about American greatness have not wanted to see the company fall into foreign hands, especially in Pennsylvania, a politically significant state.
In a statement released on Friday, US Steel referred to Trump as “a bold leader and businessman”. “U.S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years,” according to a statement provided to CNN by the business.
The union had fiercely opposed the deal, citing concerns that Nippon would not maintain a long-term commitment to the remaining unionized mills.
In a press release issued Thursday, the United Steel Workers stated that selling US Steel to Nippon would “be a disaster for American Steelworkers, our national security, and the future of American manufacturing.”
“President Trump has publicly pledged to prevent this sale since January 2024. We now urge him to take decisive action, putting an end to this corporate sellout of American steelworkers and defending US manufacturing,” the release stated.
Republican Pennsylvania Senator Dave McCormick, on the other hand, praised the partnership, saying it ensures “that U.S. Steel remains under U.S. control” in a Friday statement, though he did not elaborate on how the deal would work. In a post on X Friday, Democratic Senator John Fetterman described the original deal as a “death sentence”.
Pennsylvania Governor Josh Shapiro also praised the collaboration, stating that he had directly discussed the transaction with Trump in recent days.
“Throughout the entire process, I have maintained that my priority was to keep and grow jobs here in Pennsylvania and get the largest investment we possibly could for our Commonwealth,” he told reporters on Friday.
The stock of US Steel (NYSE: X) surged 21% on Friday after the announcement. CNN has contacted US Steel, the USW, and Pennsylvania Governor Josh Shapiro’s office for comment.