President Donald Trump announced his endorsement of a “planned partnership” between U.S. Steel and Japan’s Nippon Steel on Friday, a deal he claims will be the largest economic investment in Pennsylvania’s history, creating at least 70,000 jobs and injecting $14 billion into the U.S. economy.
The move signals a significant reversal of former President Joe Biden’s January decision to block a nearly $15 billion takeover of the iconic American steelmaker by Nippon Steel, citing national security risks.
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In a statement on Truth Social, President Trump declared, “For many years, the name, ‘United States Steel’ was synonymous with Greatness, and now, it will be again.” He confirmed that U.S. Steel will maintain its headquarters in Pittsburgh under the new arrangement.
The announcement follows a fresh review of the proposed deal by the Committee on Foreign Investment in the United States (CFIUS), which Trump directed in April after previously opposing the foreign acquisition during his 2024 campaign and as president-elect. While the precise structure of the “partnership” remains to be fully detailed, it appears to address some of the concerns that led to the initial blockage. Reports indicate the CFIUS review concluded that potential national security risks could be mitigated.
The Biden administration had blocked the sale, with President Biden stating in January, “Without domestic steel production and domestic steel workers, our nation is less strong and less secure.” That decision was met with legal challenges from the two steel companies.
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Trump, who had previously voiced strong opposition to a foreign entity purchasing U.S. Steel, appeared more amenable to a restructured deal upon taking office. His administration’s endorsement has been met with praise from some Republican lawmakers.
Pennsylvania Senator Dave McCormick hailed the agreement as a “huge victory for America.” In a statement, McCormick said, “My priorities are preserving and expanding jobs and investment in the Mon Valley. This partnership gets it done.” He highlighted that the $14 billion investment from Nippon Steel would protect over 11,000 existing jobs in Pennsylvania and potentially create at least 14,000 new positions in the state alone, with the broader 70,000 job figure likely encompassing indirect economic impacts.
Both U.S. Steel and Nippon Steel lauded President Trump’s decision. In a statement, U.S. Steel said it 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.” Nippon Steel applauded Trump’s “bold action,” calling the partnership a “game changer.”
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However, the United Steelworkers (USW) union, which had staunchly opposed the original acquisition, expressed continued concern. USW International President David McCall, reacting to reports of the CFIUS panel’s recommendation prior to Trump’s announcement, had warned that allowing the sale to Nippon, which he termed a “serial trade cheater,” would be a “disaster for American Steelworkers, our national security, and the future of American manufacturing.” The union has indicated it needs more information on the specifics of the “partnership” before fully assessing its impact.
President Trump has announced a rally scheduled for May 30 at U.S. Steel headquarters in Pittsburgh to celebrate the deal.
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