President Trump Approves a Deal for Nippon to Purchase U.S. Steel

What Happened?

President Trump has approved a deal for Nippon to buy U.S. Steel, reversing a decision made by President Biden just before he left office. On Truth Social President Trump posted, ‘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.’

U.S. Steel issued a statement saying, ‘U.S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment.’ Nippon issued its own statement: ‘The partnership between Nippon Steel and U.S. Steel is a game changer – for U.S. Steel and all of its stakeholders.’

Why it Matters

The purchase of beleaguered U.S. Steel by Nippon was disapproved by the Biden Administration, although the new offer differs from the one made during President Biden’s term.

U.S. Representative Chris Deluzio, who’s district is in western Pennsylvania, said, ‘Thank goodness guys like me didn’t fold and weakly say yes to Nippon’s initial offer. Because we didn’t blink, the reported $14+ billion offer on the table is 10 times better.’

David McCall, President of the United Steelworkers Union, still sounded worried about the deal, saying, ‘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.’ 

Time will tell who is right about whether or not the deal will be a win for the U.S. steel industry and American steel workers. Nippon has pledged to invest up to fourteen billion to upgrade U.S. steel facilities, which is sorely needed to modernize plants and make U.S. Steel more competitive.

At stake is more than just jobs and production for U.S. Steel. The storied company can be traced back to the days of Andrew Carnegie and J.P. Morgan, and the company itself came to define the city of Pittsburg and American industry in the last nineteenth and early twentieth centuries. The Pittsburg Steelers, the storied professional football team, is named after the product made by U.S. Steel. 

The reputation of American industry and capitalism are also at stake, as well as the status of the United States as a global manufacturing powerhouse. While tech companies have for the past decade been the most valuable companies in the United States, that honor once belonged to U.S. Steel. 

How it Affects You

The Trump Administration wants to restore American primacy in manufacturing, and that objective will largely hinge on the success of the deal with Nippon and U.S. Steel. If Nippon’s purchase of U.S. Steel results in higher productivity and more jobs for American workers, then the Trump Administration will have a strong piece of evidence to claim they have brought about a revival of U.S. manufacturing.