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In a dramatic turn of events, President Donald Trump has greenlit a “planned partnership” between United States Steel Corporation (U.S. Steel) and Japan’s Nippon Steel Corporation, breathing new life into a $14.9 billion deal previously blocked by former President Joe Biden. The announcement, made on May 23, 2025, signals a shift from outright acquisition to a collaborative investment model, with significant economic implications for the American steel industry.
The partnership, as outlined by Trump on his Truth Social platform, is expected to create at least 70,000 jobs and inject $14 billion into the U.S. economy over the next 14 months. U.S. Steel’s iconic headquarters will remain in Pittsburgh, Pennsylvania, preserving its legacy as a cornerstone of American industry. Following the announcement, U.S. Steel’s stock surged over 20%, closing at $52.01 per share, reflecting investor optimism about the revived deal.
The journey to this point has been fraught with challenges. In December 2023, Nippon Steel, the world’s fourth-largest steelmaker, agreed to acquire U.S. Steel for $14.9 billion, promising to maintain its name, Pittsburgh headquarters, and existing labor agreements with the United Steelworkers (USW) union. The deal aimed to bolster U.S. Steel’s aging infrastructure with billions in investments and advanced Japanese technology, positioning the combined entity as the second-largest steel producer globally. However, the proposal faced fierce opposition from the USW, bipartisan lawmakers, and both Biden and Trump, who cited national security concerns and the symbolic importance of U.S. Steel as an American institution.
On January 3, 2025, Biden blocked the acquisition via executive order, following a review by the Committee on Foreign Investment in the United States (CFIUS), which raised concerns about potential risks to critical supply chains. Nippon Steel and U.S. Steel responded with lawsuits, alleging political bias in the CFIUS process and a lack of credible evidence for national security threats. The companies argued that the deal would secure jobs, revitalize communities, and strengthen U.S. steel production against Chinese competition.
Trump’s administration marked a shift in tone. On April 7, 2025, he ordered a fresh 45-day CFIUS review to evaluate whether mitigation measures proposed by Nippon Steel—now totaling $14 billion, including $4 billion for a new steel mill—could address security concerns. On May 22, CFIUS delivered a divided recommendation, with most members believing the risks could be mitigated, paving the way for Trump’s approval of the partnership. Nippon Steel’s president, Tadashi Imai, emphasized that the deal would ensure U.S. Steel’s competitiveness through investment and technology transfer, with negotiations ongoing to finalize the structure, potentially involving a minority stake for Nippon.
Despite the progress, challenges remain. The USW, representing 11,000 of U.S. Steel’s 14,000 U.S. employees, remains skeptical, citing Nippon’s history of trade violations and concerns about long-term commitments to unionized mills. Activist investor Ancora Holdings has intensified pressure, launching a proxy battle to replace U.S. Steel CEO David Burritt with former Stelco CEO Alan Kestenbaum, arguing for operational improvements over foreign investment. Ancora’s plan, backed tentatively by USW President David McCall, includes selling non-union facilities like Big River and investing in unionized plants like Mon Valley and Gary Works.
Competing bids from U.S. steelmakers Cleveland-Cliffs and Nucor, valued in the high $30s per share, are also on the horizon but cannot proceed until Nippon’s exclusivity agreement expires on June 18, 2025. Cleveland-Cliffs’ CEO, Lourenco Goncalves, faces a lawsuit from Nippon and U.S. Steel, alleging antitrust violations and racketeering to sabotage the deal.
The partnership’s approval has sparked mixed reactions. Supporters, including some U.S. Steel employees, highlight the promised investments, such as $1 billion for Mon Valley Works and $300 million for Gary Works, as critical to modernizing facilities and securing jobs. Critics, including union leaders, warn of potential risks to American control over a vital industry.
As Trump’s final decision looms—expected within 15 days, though the timeline may slip—the steel industry and Rust Belt communities await clarity. The partnership could herald a new era for U.S. Steel, leveraging Nippon’s resources to compete globally, but its success hinges on navigating political, legal, and labor hurdles. For now, the deal represents a delicate balance between economic revitalization and national pride, with Pittsburgh’s steel legacy at its core.
For more information, visit www.ussteel.com or www.reuters.com.
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