US President Donald Trump approved a bid by Japan-based Nippon Steel to make a big investment in the iconic American steelmaker, causing the American company’s shares to surge dramatically amidst discussions about foreign control of a vital national asset.The Pennsylvania-based company’s shares increased by over 21 per cent, with further gains in after-hours trading, following Trump’s announcement on Truth Social, though specific arrangements remained unspecified.“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh. For many years, the name, ‘United States Steel’ was synonymous with Greatness, and now, it will be again. 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,” he said in a post on Truth Social.” The bulk of that Investment will occur in the next 14 months. This is the largest Investment in the History of the Commonwealth of Pennsylvania. My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA. From Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE is BACK. I will see you all at US Steel, in Pittsburgh, on Friday, May 30th, for a BIG Rally. CONGRATULATIONS TO ALL!” he added. This development follows the December 2023 announcement of a $14.9 billion merger between US Steel and Nippon Steel, which faced strong union opposition due to concerns about foreign ownership.Nippon Steel expressed support for Trump’s action, stating it shared the administration’s aims regarding American workers, industry and security.US Steel commended Trump’s leadership, confirming its continued American identity and plans for expansion through Nippon’s substantial four-year investment programme.The specific details of this partnership remain unpublished by the White House and both companies.The United Steelworkers’ union maintained its reservations, with International President David McCall expressing concerns about Nippon’s trade law compliance history and potential threats to union employment.The original acquisition, scheduled for completion by 2024’s third financial quarter, was blocked by former president Joe Biden on national security grounds, prompting legal action from both companies.Despite initial opposition, Trump’s stance has evolved to consider Nippon’s investment. He has directed the Committee on Foreign Investment in the United States to assess the acquisition’s security implications within 45 days.
