Trump shocks with US steel-Nippon approval but details elusive

President Donald Trump on Friday announced a partnership between United States Steel Corp and Japan’s Nippon Steel Corp, shocking markets with an agreement he said would keep the once-iconic American firm in the US but otherwise providing no specifics.

He stopped short of explicitly endorsing Nippon Steel’s earlier proposed $14.1 billion takeover of US Steel, but shares of the company surged as much as 26% in late Friday trading – signaling optimism over the deal’s prospects.

“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” Trump said on his Truth Social platform.
“My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA.” Statements from both companies, as well as from Governor Josh Shapiro of US Steel’s home state of Pennsylvania, praised the agreement but were otherwise devoid of specifics. While steel workers, investors and others have long been waiting for a US decision on the company’s future, it was not clear if the president has endorsed a takeover.

Trump said the partnership would create at least 70,000 jobs and add $14 billion to the US economy, with the bulk of the investment occurring in the next 14 months. He also said he would appear at an event on May 30 in Pittsburgh.

About 85,000 people now work in US steel mills, according to the Bureau of Labor Statistics. “The partnership between Nippon Steel and US Steel is a game changer,” the Japanese company said.