Trump approves $14B Nippon Steel-USS 'partnership'

It was not immediately clear whether the “partnership” amounted to an outright acquisition or some other arrangement.

Still, both Nippon Steel and U.S. Steel cheered the news.

“We share the Trump administration’s commitment to protecting American workers, the American steel industry, and America’s national security,” a spokesman for Nippon said in a statement on Friday.

“The partnership between Nippon Steel and U. S. Steel is a game changer – for U.S. Steel and all of its stakeholders, including the American steel industry, and the broader American manufacturing base,” he added.

U.S. Steel echoed that sentiment.

“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.

“U.S. Steel greatly appreciates President Trump’s leadership and personal attention to the futures of thousands of steelworkers and our iconic company,” it added.

The president, meanwhile, credited his trade policies for the pact.

“My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA,” Trump wrote. “From Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE is BACK.”

Trump also said he would be in Pittsburgh for a rally on Friday, May 30.

The development saw U.S. Steel shares jump to $52.01 each on Friday, closing up more than 21% from the previous day. The gains came on a day when many other steel stocks were down and as broader markets fell on news that Trump plans to impose 50% tariffs on the European Union (EU) starting on June 1.

Recall that the Committee on Foreign Investment in the United States (CFIUS) had been reviewing the deal for any national security risks. It delivered its recommendations to President Trump on Thursday. Reuters had reported that members of the committee, while divided, had agreed that any national security risks could be addressed.

Trump’s apparent approval of a Nippon-USS deal also came after Nippon pledged to invest $4 billion to build a new steel mill in the US.

His nod also appears to mark the final chapter in a transaction that has seen multiple setbacks since it was first announced in December 2023.

Cleveland-Cliffs, which had also bid on U.S. Steel, opposed the deal as did the United Steelworkers (USW) union. The USW as recently as Thursday reiterated its antipathy for a transaction with Nippon.

The Nippon-USS deal had in addition become a political football in the 2024 election.

President Trump had said that he didn’t want U.S. Steel to be owned by a foreign company. And former President Joe Biden blocked the deal after an initial CFIUS review resulted in a split decision.

But Biden in his last days in office extended the timeline for unwinding the deal until June. That effectively kept the possibility of a transaction alive.