US President Donald Trump on Friday backed Nippon Steel’s $14.9 billion acquisition of United States Steel Corporation (NYSE:X), reversing his earlier opposition to the deal after the Japanese company pledged to make massive new investments in American operations.
“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 to the US economy,” Trump wrote in a post on Truth Social. “The bulk of the investment will occur in the next 14 months.”
The decision marks a stark shift from Trump’s stance during the 2024 presidential campaign, when he vowed to block the transaction if re-elected.
Both U.S. Steel and Nippon Steel welcomed Trump’s announcement, calling the tie-up a “partnership” rather than an outright sale.
“U.S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years,” the company said in a statement.
Nippon Steel echoed the sentiment, calling the deal “a game changer” for U.S. Steel, the domestic steel industry, and American manufacturing.
While full details of the agreement remain unclear, Trump’s decision follows a call Friday with Japanese Prime Minister Shigeru Ishiba and comes after weeks of deliberation by the Committee on Foreign Investment in the United States (CFIUS), an interagency body that reviews foreign transactions for national security risks.
The United Steelworkers union expressed skepticism about the announcement. “Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” said USW President David McCall.
The move caps a saga that began in December 2023, when U.S. Steel accepted Nippon’s bid, angering labor leaders who favored a competing offer from Cleveland-Cliffs. Both Trump and then-President Joe Biden voiced opposition, citing the need to keep the Pittsburgh-based company under American control.
Since then, Nippon has steadily increased its investment commitment, reportedly from an initial $1.4 billion to as much as $14 billion, including plans for a new steel mill and upgrades to facilities such as Mon Valley Works and Gary Works, which could extend operational lifespans by decades.
According to analysts at Jefferies, the revised proposal includes $11 billion in infrastructure investment through 2028 and $1 billion for a new greenfield mill, potentially growing to $4 billion in total. Jefferies said the added commitments could tip the balance in favor of the deal’s approval.
“This should meaningfully increase the chances Nippon is successful in its acquisition of U.S. Steel,” Jefferies wrote in a note to clients. “It is a clear positive for U.S. Steel shareholders, but a negative for the broader US steel industry.”
The firm added that new domestic capacity from foreign firms like Nippon and Hyundai could pressure prices, posing a challenge to American producers but benefiting consumers and downstream manufacturers.