President Donald Trump publicly praised the partnership between U.S. Steel and Nippon Steel during a rally near Pittsburgh, Pennsylvania, emphasizing that the iconic American steel company would remain American despite the proposed transaction. Speaking to a crowd of over 1,600 workers, many in hard hats, Trump expressed optimism about the prospective Japanese partner while underscoring American control.
"We're here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company," Trump stated. However, he clarified that final approval of the deal, which involves Nippon Steel's acquisition of U.S. Steel, remains pending and that he has not yet reviewed the ultimate terms.
The acquisition, initially proposed in 2023, has stirred significant debate within Pennsylvania, a politically critical state with a heavily unionized workforce. The merger has also prompted complex diplomatic considerations between Washington and Tokyo, as it entails foreign ownership of a major American industrial firm.
Trump reassured workers the company would continue under U.S. control and promised no layoffs resulting from the deal. He also indicated that Nippon Steel would invest billions to modernize and expand U.S. Steel's production capacity. The president further announced a plan to double tariffs on imported steel from 25% to 50%, a measure slated to take effect on Wednesday.
Despite positive remarks about the partnership, Trump reiterated caution, noting he would be monitoring developments closely and has yet to endorse the acquisition fully. Neither the White House nor the companies involved have provided definitive statements regarding the deal's status.
Investor sentiment has fluctuated amid the ongoing negotiation process. Following Trump's initial social media endorsement of the partnership last week, U.S. Steel's stock surged by over 20%. Yet, subsequent remarks emphasizing a potential minority investment rather than a full takeover introduced uncertainty.
The deal's timeline remains uncertain. Trump has until Thursday to approve or reject the merger after the Committee on Foreign Investment in the United States completed a second national security review. However, this deadline could be extended.
Background challenges have characterized the transaction since Nippon Steel proposed acquiring U.S. Steel for $14.9 billion in late 2023. Both Trump and his predecessor opposed foreign acquisition to bolster electoral support in Pennsylvania. The Biden administration initially blocked the deal citing national security concerns, leading to legal disputes over the review process.
The renewed national security review under Trump has reopened negotiations, but his mixed signals have tempered investor enthusiasm. Nippon Steel has reportedly proposed a $14 billion investment into U.S. Steel operations, including a $4 billion plan for a new steel mill, contingent on deal approval.
