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In a surprising turn of events, Donald Trump has given his approval to Nippon Steel’s $15 billion deal to acquire US Steel. This decision marks a reversal of Trump’s previous opposition to cross-border transactions, which was blocked by Joe Biden on national security grounds.
In a social media post on Friday, Trump announced his support for the partnership between United States Steel and Nippon Steel. He highlighted the creation of at least 70,000 jobs and the addition of $14 billion to the US economy. Trump also mentioned that the majority of the additional investment would be made within the next 14 months.
While Trump’s post was seen as a tacit endorsement of the merger, further meetings will be required to formalize his approval. The US company will remain headquartered in Pittsburgh, Pennsylvania, where it has been based for over a century. Trump even plans to host a rally in the city on May 30 to celebrate the partnership.
Last year, Trump voiced strong opposition to Nippon Steel’s takeover of US Steel, stating that it would be detrimental if sold to a foreign entity. However, with his recent show of support, it seems that Trump’s stance has shifted.
The United Steelworkers union, which supported Trump’s initial resistance to the deal, expressed concerns about the impact of a foreign corporation taking over domestic steelmaking capacity. Despite these concerns, Nippon Steel has committed to investing more capital into the business to gain union and political support.
The $15 billion transaction has faced political challenges and national security concerns since it was agreed upon at the end of 2023. Both Biden and vice-president Kamala Harris, as well as Trump, opposed the deal during their respective campaigns.
Nippon Steel’s increased investment and Trump’s tariff policies aim to ensure that steel production remains in America. The specifics of the deal, initially thought to be an acquisition of the US company by Nippon Steel, are still unclear.
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