U.S. Steel's acquisition by Nippon is given green light by Trump
President Donald Trump has cleared the way for a strategic partnership between U.S. Steel and Nippon Steel, a move that is expected to generate at least 70,000 jobs and inject $14 billion into the U.S. economy. The approval reverses a national security-based blockage under the Biden administration, which had prohibited Nippon Steel from acquiring its U.S. rival for nearly $15 billion.
The agreement, which will keep U.S. Steel's headquarters in Pittsburgh, was announced by Trump on his Truth Social platform. The president underscored that his tariff policies will support the revitalization of American steel manufacturing, ensuring that steel remains "forever made in America."
Following the announcement, U.S. Steel shares surged more than 21% to close at $52.01 per share. Pennsylvania Governor Josh Shapiro applauded the agreement, stating that he had collaborated with local, state, and federal leaders to secure the best deal for Pittsburgh and protect union jobs.
Lieutenant Governor Austin Davis noted that while the announcement is promising, he wants to ensure that everyone involved in the deal upholds their commitments. He looks forward to seeing the promised investments materialize and workers receive everything they have fought for.
In January, President Joe Biden had blocked the original acquisition based on national security concerns, arguing that the acquisition would pose a risk to critical U.S. supply chains. However, after coming into office, Trump ordered a new review of the proposed acquisition by the Committee on Foreign Investment in the United States (CFIUS).
Trump's decision to approve the partnership arrangement comes after CFIUS determined that further action might be appropriate. Trump plans to hold a rally at U.S. Steel in Pittsburgh on May 30.
- The partnership between U.S. Steel and Nippon Steel, approved by President Trump, is anticipated to inject $14 billion into the U.S. economy and generate at least 70,000 jobs, a sign of revitalization in the American manufacturing industry and business.
- To ensure the success of the strategic partnership, Lieutenant Governor Austin Davis has emphasized the importance of commitments being upheld, looking forward to the promised investments in the manufacturing sector and the benefits received by workers.
- The approval of the partnership between U.S. Steel and Nippon Steel was preceded by a reversal of a national security-based blockage under the Biden administration and a subsequent review by the Committee on Foreign Investment in the United States (CFIUS) under the Trump administration, reflecting a shift in finance and industry strategies between the two administrations.
