President Donald Trump has recently indicated a significant shift in his stance regarding the proposed acquisition of U.S. Steel by the Japanese steel giant Nippon. On Friday, Trump expressed broad approval for the merger, marking a notable reversal from his earlier opposition during his presidential campaign. This change comes just a day after the United Steelworkers union urged the president to honor his commitment to block the deal, which has raised concerns among American workers.
In a post shared on his social media platform, Trump announced a "planned partnership" between U.S. Steel and Nippon, leading to widespread confusion regarding the specifics of the deal. The announcement had an immediate positive impact on U.S. Steel’s stock, which surged over 20%. Both companies responded positively to the news, commending Trump's intervention. Notably, Trump reassured the public that U.S. Steel "will REMAIN in America" and confirmed that the company's headquarters would stay in Pittsburgh.
An unnamed source familiar with the merger negotiations told the Financial Times that Trump’s post was seen as "tacit approval" of the $15 billion takeover deal, which was originally revealed in late 2023. Earlier this year, the Biden administration had blocked Nippon's attempt to acquire U.S. Steel, and Trump had also voiced his opposition during his 2024 presidential campaign.
Former U.S. Senator Sherrod Brown (D-Ohio) criticized Trump’s change of heart, labeling it as "a betrayal of American workers." In response to Trump’s announcement, David McCall, the international president of the United Steelworkers, expressed that "we cannot speculate" on the arrangement’s details but reiterated the union's apprehensions. He warned that "Nippon, a foreign corporation known for violating trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs."
In a related development, last month, Trump ordered the Committee on Foreign Investment in the U.S. to conduct a review of potential national security risks linked to the proposed transaction. According to a report by Reuters, the committee's review, submitted on Wednesday, was marked by division in its recommendations. However, most panel members concluded that any security risks associated with the deal could be mitigated.
McCall responded sharply to the committee’s findings, stating that "allowing the sale of U.S. Steel to Nippon, a consistent trade violator, will be disastrous for American Steelworkers, our national security, and the future of American manufacturing." He further criticized the notion of trusting Nippon with the future of a vital industry essential for both national defense and critical infrastructure.
McCall emphasized the longstanding issues with Nippon, accusing the company of dumping products into the U.S. market for decades, which has resulted in the loss of numerous community-supporting jobs and weakened the country’s steelmaking capabilities. He implored President Trump to act decisively against the merger, urging him to "shut the door once and for all on this corporate sellout of American Steelworkers and defend U.S. manufacturing."
