WASHINGTON, USA — US President Donald Trump on Friday, May 23, 2025, unveiled a proposed $14 billion partnership between U.S. Steel and Japan’s Nippon Steel, a move he said would keep U.S. Steel’s headquarters in Pittsburgh, create at least 70,000 jobs, and deliver a major boost to American manufacturing.
In a post on his TruthSocial platform, Trump described the arrangement as a “planned partnership” rather than a full acquisition.
“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,” he wrote.
Trump is expected to hold a rally at a U.S. Steel facility on Friday, May 30, 2025, underscoring the political significance of the announcement ahead of the 2026 midterm elections.
However, the details of the agreement remain unclear.
Trump did not clarify whether the deal constitutes a merger, acquisition, or minority investment, nor how operational control will be divided.
The statement comes months after President Joe Biden blocked a $14.3 billion acquisition deal by Nippon during his final days in office, citing national security concerns and bipartisan resistance to foreign control of the once-dominant American steelmaker.
Trump himself initially opposed a full acquisition, saying, “I don’t want U.S. Steel being owned by a foreign country. All they can have is an investment.”
But in March, his administration signalled a possible shift in position after requesting a deadline extension in a lawsuit brought by U.S. Steel and Nippon Steel against the Committee on Foreign Investment in the United States (CFIUS).
CFIUS had launched a review of the deal in April and submitted a recommendation to the White House earlier this week.
According to Reuters, Nippon sweetened the deal with an additional $4 billion investment in a new U.S. steel mill.
Founded in 1901, U.S. Steel was once the world’s most valuable company and a symbol of American industrial dominance.
Today, it employs around 14,000 workers in the U.S., including 11,000 members of the United Steelworkers (USW) union.
The company is no longer the country’s largest steel producer but remains politically symbolic, particularly in battleground states like Pennsylvania.
In a statement Friday, U.S. Steel hailed Trump as “a bold leader and businessman,” asserting that the company “will remain American” and would become “bigger and stronger” through the Nippon partnership.
The company emphasised benefits including new technology, infrastructure investment, and job creation.
However, labour opposition remains fierce.
In a press release on Thursday, May 22, 2025, the USW described the transaction as “a disaster for American Steelworkers, our national security and the future of American manufacturing.”
The union urged Trump to honour his earlier pledge to block foreign ownership of the company.
“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,” the statement said.
Despite labour resistance, several political leaders have welcomed the announcement.
Pennsylvania Governor Josh Shapiro, who said he personally discussed the transaction with Trump, praised the partnership’s potential to grow local jobs.
“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,” Shapiro said.
Republican Senator Dave McCormick of Pennsylvania also backed the deal, stating it “ensures that U.S. Steel remains under U.S. control,” though specifics remain scant.
Senator John Fetterman, a Democrat, remained critical, reiterating that the original acquisition plan amounted to a “death sentence” for American steelworkers.
Shares of U.S. Steel (NYSE: X) surged 21 percent on Friday following Trump’s announcement, reflecting investor optimism despite the unresolved regulatory and political hurdles surrounding the deal.
