Donald Trump has approved a significant deal between Japan’s Nippon Steel and US Steel. While the details remain unclear, concerns have arisen about its impact on US steelworkers and national security.
The specifics of the agreement are still unclear, raising concerns among steelworkers.
Just days after unveiling a new Air Force One, a gift from Qatar, Trump approved a planned partnership between Japan’s Nippon Steel and the American company, US Steel.
Details of the deal remain undisclosed. It’s unclear whether Nippon Steel will invest in US Steel or fully acquire it. The Financial Times reports Nippon Steel is buying US Steel for $15 billion.
Nippon and the economic impact on US Steel jobs
Trump claimed the deal would create 70,000 jobs and add $14 billion to the US economy. He added that US Steel’s headquarters will stay in Pittsburgh. Most of Nippon’s investment will occur over the next 14 months.
US Steel currently employs around 22,000 people, with 14,000 in North America.
Trump also announced plans for a “BIG RALLY” at the US Steel plant next Friday.
Union concerns over foreign ownership
Both Nippon Steel and US Steel have supported the deal, but the United Steelworkers union (USW) remains concerned.
“We can’t comment on the impact without more details,” said David McCall, the union president. “Our main worry is that Nippon, a foreign company with a history of breaking trade laws, could harm US steel production and jeopardise thousands of union jobs.”
In 2023, Nippon Steel planned to buy US Steel for $14.9 billion. This deal faced opposition from President Joe Biden, the union, and even Trump. The union had hoped an American company, Cleveland-Cliffs, would acquire US Steel instead.
Biden’s blockage and national security concerns
Biden blocked the takeover in January, citing national security concerns. He warned that foreign control of US Steel could harm critical supply chains.
After the Committee on Foreign Investment in the United States gave its recommendations to Trump, the union issued a statement. They expressed concerns about a potential Nippon takeover.
“Allowing Nippon to buy US Steel would hurt American workers, national security, and US manufacturing,” the union stated.
“We can’t entrust one of our most vital industries to a company with such a poor trade record,” they added.
Trump made his decision after speaking with Japanese Prime Minister Shigeru Ishiba on Friday.
Following the announcement, US Steel’s shares rose by over 20%, closing at $52.01 per share.
