Trump Approves Partnership Between U.S. Steel and Nippon

U.S. President Donald Trump announced through a social networking service that he would approve the partnership between U.S. Steel and Nippon Steel. Although he once said that he would not allow the Japanese steel company acquiring a major steel maker in the U.S., the media reports in Japan reported Trump’s comment as a sign of major progress for purchasing. However, Trump has not made clear whether he would approve Nippon Steel to obtain 100 percent of U.S. Steel’s share. 

Both steel makers announced a deal of Nippon Steel’s acquisition of U.S. Steel in December 2023. Joe Biden administration blocked the deal with an order of prohibiting the acquisition in January 2025, raising a possibility that Nippon Steel “might take action that threatens to impair the national security of the United States.”

 

At the time when he took seat of the president, Trump was negative on the acquisition, insisting that no one would be able to occupy the share of U.S. Steel beyond 50 percent. But he changed his mind after his tariff policy caused a fluctuation in stock market in April. President Trump ordered the Committee of Foreign Investment in the United States (CFIUS) to review the decision of Biden. The CFIUS reportedly submitted their report to the president on May 21st.

 

Although the substance of the report has not disclosed, Trump announced his decision in his account of Truth Social. “This will be a planned partnership between United States and Nippon Steel, which will create at least 70,000 jobs and add $14 Billion Dollars to the US Economy,” wrote Trump. He added that his tariff policies would ensure that steel would once again be made in America.

 

Reuters reported earlier this month that Nippon Steel offered 14 billion dollars of investment for U.S. Steel. It will be a significant investment ten times bigger than what the company once determined at the time of reaching an agreement for acquisition two and a half years ago. It is likely that the bold offer motivated Trump to decide to promote the deal, because he could appeal his achievement of a major investment as a consequence of his tariff policies.

 

Nippon Steel issued a statement to welcome Trump’s decision. “We heartily respect the bold decision. It should be a remarkable turning point to the U.S. steel industry as well as the entire American manufacturing business,” said the statement.

 

U.S Steel also praised Trump’s decision. “U.S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Stees that brings massive investment, new technologies and thousands of jobs over next four years,” announced U.S. Steel.

 

However, there is a skepticism in Nippon Steel that Trump may not have decided “acquisition” of U.S. Steel, which still is the goal for Nippon Steel. It is undeniable that Trump has possibly not approved 100 percent acquisition but “a planned partnership.” Nippon Steel hopes to assure Trump’s approval on acquisition before it will transfer its important technologies to U.S. Steel.

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