U.S. President Donald Trump has endorsed Nippon Steel’s $14.9 billion acquisition of U.S. Steel, calling it a “planned partnership” that will create over 70,000 jobs and inject $14 billion into the U.S. economy. The news sent U.S. Steel shares soaring 21%, nearing Nippon’s $55-per-share offer price from 2023.
Trump announced his support via Truth Social, stating that most of the investment will roll out within 14 months. He also revealed plans to hold a rally at U.S. Steel’s Pittsburgh headquarters next Friday. Nippon Steel praised Trump’s approval, while U.S. Steel reaffirmed that the company will remain American, benefiting from new technologies and major capital inflows.
The Committee on Foreign Investment in the U.S. (CFIUS) cleared the deal this week, declaring that any national security concerns could be mitigated. Trump’s nod marks a reversal from his previous stance opposing foreign ownership. President Joe Biden had previously blocked the deal in January over security issues, prompting lawsuits from both companies. Investors accused Biden of political motives, citing union influence in Pennsylvania during his reelection campaign.
Pennsylvania Senator Dave McCormick called the deal a “huge victory” that safeguards 11,000 jobs and supports 14,000 more in the state. Meanwhile, the United Steelworkers union remains opposed, urging Trump to reconsider despite the $14 billion pledge.
Investors welcomed Trump’s shift, anticipating a cash payout once U.S. Steel goes private. “We understood Trump’s psyche and played it to our advantage,” said one hedge fund investor. Another noted the deal ensures the steel industry remains rooted in Pittsburgh for future generations.
With Trump’s backing, the long-contested merger appears set to close, reshaping the American steel landscape amid rising global competition and political stakes.