President Donald Trump announced a partnership between U.S. Steel and Japanese steelmaker Nippon that he says will keep the headquarters in Pittsburgh and draw $14 billion in investment toward the US economy.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy. The bulk of that Investment will occur in the next 14 months,” Trump posted on TruthSocial Friday.
Trump will visit the steel plant next Friday for a “BIG rally,” he said.
But Trump’s post included few details about what’s included in the deal, such as whether this is truly a partnership instead of an acquisition and how much control would remain with U.S. Steel.
Former president Joe Biden blocked the $14.3 billion acquisition during his last week in office. The deal has been controversial since it was first announced in December 2023, with both sides of the political aisle opposing foreign control of a once-key component of US industrial might that has fallen on hard times.
Trump found rare convergence with Biden when also began his term opposed to an outright deal. “I don’t want US Steel being owned by a foreign country. All they can have is an investment,” Trump said.
But in March, the Trump administration signaled it may allow the deal to go through after it filed a motion to extend two deadlines in a lawsuit U.S. Steel and Nippon Steel filed against the Committee on Foreign Investment in the United States, which scrutinizes foreign investments for national security risks.
CFIUS launched a review into the acquisition in April, and submitted a recommendation to Trump on whether any of the measures proposed by the companies would mitigate national security risks on Wednesday, Reuters reported. Nippon raised its investment pledge in US Steel’s operations to $14 billion, which would include a new $4 billion steel mill in the US, if its bid was greenlit, according to Reuters.
US Steel was once a symbol of American industrial might, when it was the most valuable company in the world and the first to be worth $1 billion, soon after its creation in 1901. It was also crucial to the US economy and the cars, appliances, bridges and skyscrapers that tangibly indicated that strength.
But it has suffered through decades of decline since its post-World War II height. It is no longer even the largest US steelmaker, and a relatively minor employer, with 14,000 US employees — 11,000 of whom are members of the United Steel Workers union. But it is still not a company that politicians who enjoy talking about American greatness have wanted to see fall into foreign hands — particularly in the politically significant state of Pennsylvania.
US Steel called Trump “a bold leader and businessman” in a statement Friday. “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,” the company said in a statement.
The deal had sparked fierce opposition from the union, saying it was concerned the Nippon would not maintain a long-term commitment to the remaining unionized mills.
In a press release Thursday, the United Steel Workers said that allowing US Steel to be sold to Nippon would “be a disaster for American Steelworkers, our national security and the future of American manufacturing.”
“President Trump has publicly pledged to block this sale since January 2024. We now urge him to act decisively, shutting the door once and for all on this corporate sellout of American Steelworkers and defending U.S. manufacturing,” the release said.
But Republican Pennsylvania Senator Dave McCormick applauded the partnership, saying it ensures “that U.S. Steel remains under U.S. control” in a Friday statement, although he too did not detail how the deal would work. Democratic Senator John Fetterman said the original deal was a “death sentence” in a post on X Friday.
Pennsylvania Governor Josh Shapiro also praised the partnership, adding that he directly discussed the transaction with Trump in the past few 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 said in a statement Friday.
US Steel (NYSE: X) stock shot up 21% Friday once the news was announced. CNN News has reached out to US Steel, the USW, and Pennsylvania Governor Josh Shapiro’s office for comment.
