Former President Donald Trump has thrown his support behind Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel, calling the deal a “planned partnership” that promises to create tens of thousands of jobs and bring billions of dollars into the American economy.
The announcement came via Trump’s Truth Social account, where he praised the strategic value of the acquisition, claiming it would result in 70,000 new jobs and a $14 billion investment across the United States within the next 14 months. He also reassured the public that U.S. Steel would remain under American control—though he did not elaborate on the mechanisms to ensure that.
The endorsement represents a striking departure from Trump’s long-held stance against foreign takeovers of iconic American companies. Previously, Trump had voiced strong opposition to similar deals, citing concerns about national security and domestic job losses. His backing of the Nippon Steel-U.S. Steel deal signals a nuanced shift in industrial strategy, one increasingly open to global partnerships that promise tangible economic gains.
Shares Soar Following Endorsement
Following Trump’s announcement, shares of U.S. Steel jumped by 21% on Wall Street, reflecting a burst of investor confidence. Despite the surge, the stock remains below Nippon Steel’s offer of $55 per share, suggesting that market participants still harbor concerns about potential regulatory hurdles or deal execution risks.
For Nippon Steel, the acquisition represents a strategic move to expand its footprint in the United States and elevate its global stature. If completed, the merger would create the world’s third-largest steel producer, trailing only Chinese giants China Baowu Group and HBIS Group.
Economic and Strategic Implications
Trump’s endorsement also underscores the perceived economic benefits tied to the deal. The proposal includes assurances to keep U.S. Steel’s headquarters in Pittsburgh and promises of new investments in domestic facilities, including a state-of-the-art steel mill.
Economists have pointed to the potential ripple effects for U.S. manufacturing, particularly in the Rust Belt states where steel production remains a key economic pillar. Increased capital investment could mean revitalized infrastructure, new hiring sprees, and technology upgrades in steel facilities that have struggled to compete globally in recent years.
“This could be a game-changer for American steel,” said one industry expert. “With the right safeguards and oversight, this partnership could fuse Japanese innovation with American industrial capacity.”
Union Response Mixed
While the proposed partnership has stirred optimism in some business circles, labor unions remain cautiously skeptical. The United Steelworkers union has demanded stronger guarantees to protect American jobs and maintain domestic production. Union leaders have called for a binding agreement that prioritizes long-term job security and ensures no erosion of labor standards.
“We need more than promises,” said a union spokesperson. “We want enforceable commitments that our members’ livelihoods won’t be sacrificed in the name of globalization.”
The union’s concerns come amid a broader debate over foreign ownership of strategic assets. While Trump’s new position appears to favor beneficial global investment, critics argue that insufficient regulation could lead to weakened national control over key industries.
Political and Policy Repercussions
Trump’s support for the deal could have significant implications for both economic and political landscapes ahead of the 2024 election cycle. Analysts suggest that this endorsement might be part of a broader strategy to appeal to industrial and union workers in key battleground states such as Pennsylvania, Ohio, and Michigan.
“This is a calculated pivot,” noted a political strategist. “Trump is rebranding himself not just as a nationalist, but as a pragmatic dealmaker who can bring jobs and growth through strategic global alliances.”
The Biden administration has yet to comment publicly on the development, though any final approval would likely require scrutiny from the Committee on Foreign Investment in the United States (CFIUS), a key gatekeeper in cross-border acquisitions involving critical industries.
Looking Ahead
The fate of the Nippon Steel-U.S. Steel merger remains uncertain pending regulatory approval and labor negotiations. Still, Trump’s unexpected endorsement adds political momentum and public visibility to a deal that could reshape the future of American steel production.
With global demand for steel rising and domestic facilities needing modernization, the proposed acquisition could be a pivotal moment in reinvigorating one of America’s foundational industries—so long as economic promises translate into measurable outcomes.