Trump holding Pennsylvania rally to promote deal for Japan-based Nippon to ‘partner' with US Steel
President Donald Trump is holding a rally in Pennsylvania on Friday to celebrate a details-to-come deal for Japan-based Nippon Steel to invest in U.S. Steel, which he says will keep the iconic American steelmaker under U.S. control.
Though Trump initially vowed to block the Japanese steelmaker's bid to buy Pittsburgh-based U.S. Steel, he changed course and announced an agreement last week for what he described as 'partial ownership' by Nippon. It's not clear, though, if the deal his administration helped broker has been finalized or how ownership would be structured.
Trump stressed the deal would maintain American control of the storied company, which is seen as both a political symbol and an important matter for the country's supply chain, industries like auto manufacturing, and national security.
4 President Donald Trump is holding a rally in Pennsylvania on Friday to celebrate a details-to-come deal for Japan-based Nippon Steel to invest in U.S. Steel.
AP
Trump, who has been eager to strike deals and announce new investments in the U.S. since retaking the White House, is also trying to satisfy voters, including blue-collar workers, who elected him as he called to protect U.S. manufacturing.
U.S. Steel has not publicly communicated any details of a revamped deal to investors. Nippon Steel issued a statement approving of the proposed 'partnership' but also has not disclosed terms of the arrangement.
State and federal lawmakers who have been briefed on the matter describe a deal in which Nippon will buy U.S. Steel and spend billions on U.S. Steel facilities in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota.
The company would be overseen by an executive suite and board made up mostly of Americans and protected by the U.S. government's veto power in the form of a 'golden share.'
4 Nippon Steel issued a statement approving of the proposed 'partnership,' but also has not disclosed the terms of the arrangement.
AP
In the absence of clear details or affirmation from the companies involved, the United Steelworkers union, which has long opposed the deal, this week questioned whether the new arrangement makes 'any meaningful change' from the initial proposal.
'Nippon has maintained consistently that it would only invest in U.S. Steel's facilities if it owned the company outright,' the union said in a statement. 'We've seen nothing in the reporting over the past few days suggesting that Nippon has walked back from this position.'
The White House did not offer any new details Thursday. U.S. Steel did not respond to messages seeking information. Nippon Steel also declined to comment.
No matter the terms, the issue has outsized importance for Trump, who last year repeatedly said he would block the deal and foreign ownership of U.S. Steel, as did former President Joe Biden.
Trump promised during the campaign to make the revitalization of American manufacturing a priority of his second term in office. And the fate of U.S. Steel, once the world's largest corporation, could become a political liability in the midterm elections for his Republican Party in the swing state of Pennsylvania and other battleground states dependent on industrial manufacturing.
Trump said Sunday he wouldn't approve the deal if U.S. Steel did not remain under U.S. control and said it will keep its headquarters in Pittsburgh.
In an interview on Fox News Channel on Wednesday, Pennsylvania Republican Rep. Dan Meuser called the arrangement 'strictly an investment, a strategic partnership where it's American-owned, American-run and remains in America.'
However, Meuser said he hadn't seen the deal and added that 'it's still being structured.'
Pennsylvania Republican Sen. David McCormick came out in favor of the plan, calling it 'great' for the domestic steel industry, Pennsylvania, national security, and U.S. Steel's employees. A bipartisan group of senators, joined by then-Senate candidate McCormick, had opposed Nippon Steel's initial proposed purchase of U.S. Steel for $14.9 billion after it was announced in late 2023.
4 State and federal lawmakers who have been briefed on the matter describe a deal in which Nippon will buy U.S. Steel and spend billions on U.S. Steel facilities in various states.
AP
In recent days, Trump and other American officials began touting Nippon Steel's new commitment to invest $14 billion on top of its $14.9 billion bid, including building a new electric arc furnace steel mill somewhere in the U.S.
Pennsylvania's other senator, Democrat John Fetterman, who lives across the street from U.S. Steel's Edgar Thomson Steel Works blast furnace, didn't explicitly endorse the new proposal. But he said he had helped jam up Nippon Steel's original bid until 'Nippon coughed up an extra $14B.'
The planned 'golden share' for the U.S. amounts to three board members approved by the U.S. government, which will essentially ensure that U.S. Steel can only make decisions that'll be in the best interests of the United States, McCormick said Tuesday on Fox News.
Gov. Josh Shapiro, a Democrat who is seen as a potential presidential candidate, had largely refrained from publicly endorsing a deal but said at a news conference this week that he was 'cautiously optimistic' about the arrangement.
4 Trump and other American officials began touting Nippon Steel's new commitment to invest $14 billion on top of its $14.9 billion bid, including building a new electric arc furnace steel mill somewhere in the U.S, according to reports.
Chris Kleponis/POOL via CNP/INSTARimages.com
In an interview published Thursday in the conservative Washington Examiner, Shapiro said: 'The deal has gotten better. The prospects for the future of steelmaking have gotten better.'
Chris Kelly, the mayor of West Mifflin, Pennsylvania, where U.S. Steel's Irvin finishing plant is located, said he was 'ecstatic' about the deal, though he acknowledged some details were unknown. He said it will save thousands of jobs for his community.
'It's like a reprieve from taking steel out of Pittsburgh,' he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
38 minutes ago
- New York Post
‘60 Minutes' has history of cozy interviews and self-promotion
Beware of those who publicly declare that their stuff doesn't stink. Recently, CBS newsman and '60 Minutes' regular Scott Pelley made news and noise when he seized the close of the venerable program to deliver an appeal, threat or whatever, depending on how one heard it, to CBS News parent Paramount, as it was reportedly preparing to settle a lawsuit brought last year by President Trump over the show's very cozy interview with VP Kamala Harris during last year's presidential campaign. Pelley cited the week's resignation of '60 Minutes' executive producer, Bill Owens, adding, 'Paramount began to supervise our content in new ways. None of our stories has been blocked, but Bill felt he lost the independence that honest journalism requires. … Bill made sure they were accurate and fair. Advertisement 'He was tough that way, but our parent company Paramount is trying to complete a merger. The Trump administration must approve it.'
Yahoo
40 minutes ago
- Yahoo
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK (AP) — President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system" are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at msedensky@ and Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
40 minutes ago
- Associated Press
Spike in steel tariffs could imperil Trump promise of lower grocery prices
NEW YORK (AP) — President Donald Trump's doubling of tariffs on foreign steel and aluminum could hit Americans in an unexpected place: grocery aisles. The announcement Friday of a staggering 50% levy on those imports stoked fear that big-ticket purchases from cars to washing machines to houses could see major price increases. But those metals are so ubiquitous in packaging, they're likely to pack a punch across consumer products from soup to nuts. 'Rising grocery prices would be part of the ripple effects,' says Usha Haley, an expert on trade and professor at Wichita State University, who added that the tariffs could raise costs across industries and further strain ties with allies 'without aiding a long-term U.S. manufacturing revival.' Trump's return to the White House has come with an unrivaled barrage of tariffs, with levies threatened, added and, often, taken away, in such a whiplash-inducing frenzy it's hard to keep up. He insisted the latest tariff hike was necessary to 'even further secure the steel industry in the U.S.' That promise, though, could be at odds with his pledge to reduce food costs. Rising grocery prices, Trump has said, were among the biggest reasons voters swung his way. A look around a supermarket makes clear how many products could be impacted by new taxes on steel and aluminum, from beer and soda to dog food to can after can of beans, fruit, tomato paste and more. 'It plays into the hands of China and other foreign canned food producers, which are more than happy to undercut American farmers and food producers,' insists Can Manufacturers Institute president Robert Budway. 'Doubling the steel tariff will further increase the cost of canned goods at the grocery store.' Budway says production by domestic tin mill steel producers, whose products are used in cans, have dramatically decreased in recent years, making manufacturers reliant on imported materials. When those prices go up, he says, 'the cost is levied upon millions of American families.' Food companies were already warily assessing the administration's tariffs before the latest hike, which Trump said would go into effect on Wednesday. The Campbell Co., whose soup cans are a staple for millions of Americans, has said it was working to mitigate the impact of tariffs but may be forced to raise prices. ConAgra Brands, which puts everything from cans of Reddi-Whip to cooking sprays like Pam on supermarket shelves, likewise has pointed to the impact steel and aluminum tariffs have. 'We can't get all of our materials from the US because there's no supply,' ConAgra CFO David Marberger said at a recent Goldman Sachs conference on global staples. Beyond the obvious products — canned foods like tuna, chicken broth and cranberry sauce — economists warn of a spillover effect that tariffs can have on a gamut of items. If the cost to build a store or buy a truck to haul food rise, the prices of products may follow. Most Americans will never buy a tractor, but Babak Hafezi, who runs a global consulting firm and teaches international business at American University, says a price spike in such a big-ticket item vital to food production will spill down to all sorts of other items. 'If a John Deere tractor costs 25% more, consumers pay the price for that,' Hafezi says. 'This trickles down the economy and impacts every aspect of the economy. Some of the trickling is immediate and others are slower to manifest themselves. But yes, prices will increase and choices will decrease.' Trump appeared before a crowd of cheering steelworkers to unveil the new tariffs at a rally outside Pittsburgh. In a statement, David McCall, president of the United Steelworkers International union, called tariffs 'a valuable tool in balancing the scales' but 'wider reforms of our global trading system' are needed. It may be harder to gauge the weight of tariffs on, say, a can of chickpeas versus that of a new car, but consumers are likely to see myriad indirect costs from the levies, says Andreas Waldkirch, an economics professor at Colby College who teaches a class on international trade. 'Anybody who's directly connected to the steel industry, they're going to benefit. It's just coming at a very high cost,' Waldkirch says. 'You may get a few more steel jobs. But all these indirect costs mean you then destroy jobs elsewhere. If you were to add that all in, you come up with a pretty large negative loss.' ___ Matt Sedensky can be reached at [email protected] and
