Trump lauds Nippon Steel as "great partner" for U.S. Steel
KYODO NEWS - 7 hours ago - 13:24 | All, World
President Donald Trump on Friday heaped praise on Nippon Steel Corp. over what he views as a partnership deal with United States Steel Corp., offering backing to the Japanese company's $14 billion investment into the iconic but struggling American producer.
During a speech at a U.S. Steel plant in Pennsylvania, Trump called Nippon Steel a "great partner" and said the two steelmakers will form a "tremendous relationship" without offering many details about the deal, which he has never described as being the buyout the Japanese company has desired.
"Most importantly, U.S. Steel will continue to be controlled by the USA," said Trump, who was against Nippon Steel's $14.1 billion takeover bid of U.S. Steel during the 2024 election campaign. "Otherwise, I wouldn't have done the deal."
After returning from Pennsylvania, Trump told reporters at Joint Base Andrews near Washington that he still has to approve "the final deal" between the two steelmakers.
His remarks during a visit to the plant in West Mifflin for a rally with steelworkers came after he unexpectedly struck a positive note a week earlier on "a planned partnership" between U.S. Steel and Nippon Steel, welcoming the prospect of the at least 70,000 jobs it will create and $14 billion it will add to the U.S. economy.
Trump also said he will raise tariffs on steel imports to 50 percent from the 25 percent that took effect in March along with the same rate charged on aluminum from most countries, citing national security.
Trump later said on social media that the new tariff rate will go into effect on Wednesday. "Our steel and aluminum industries are coming back like never before," he said.
Nippon Steel, the world's fourth-largest producer, has sought to make U.S. Steel a wholly owned subsidiary. The Tokyo-headquartered company has yet to provide details of the latest status of the deal.
"A strong steel industry is not just a matter of dignity or prosperity and pride," Trump said. "It's above all, a matter of national security."
Trump said Nippon Steel's investment is the largest of any kind in the history of Pennsylvania and that the $14 billion is unprecedented in the history of the steel industry in the United States.
He said it is "an incredible deal" that will ensure all U.S. Steel workers keep their jobs and all the company's facilities in the country remain open and thriving.
The attendees of the rally included U.S. Steel CEO David Burritt and Takahiro Mori, Nippon Steel's vice chairman, who played a central role in negotiating the takeover bid.
In addition to praising Burritt, Trump extolled Mori's contribution to making the landmark investment happen, saying, "He's highly respected all over the world for what he's done with steel."
Trump said U.S. Steel will maintain all its existing operating blast furnaces "at full capacity for a minimum of the next 10 years, and we have that as a commitment."
Nippon Steel and U.S. Steel announced their merger plan in December 2023. However, then President Joe Biden in early January this year issued an order blocking the sale of U.S. Steel to the Japanese firm, citing national security grounds, following a recommendation by a panel of federal agencies.
Trump, who took office for a second term in January, ordered the Committee on Foreign Investment in the United States to conduct another review of Nippon Steel's proposed acquisition.
With the review now complete, although its outcome remains unknown, Trump has until Thursday to determine whether to approve Nippon Steel's set of proposals.
During the 2024 presidential election cycle, Biden and Trump stated that U.S. Steel should remain in domestic hands, a view shared by the leadership of the powerful United Steelworkers union.
Both U.S. Steel and the powerful union are based in Pennsylvania, which was a key battleground state in the Nov. 5 presidential election, and the planned acquisition became highly political, although the proposed buyout came from a leading company from Japan, a close U.S. ally.
Founded in 1901, U.S. Steel was once a symbol of American economic prowess, but it has struggled to keep up with competition from Chinese and other foreign rivals.
U.S. Steel and its shareholders were supportive of the takeover, which would make it more competitive globally and create the world's third-largest steelmaker by volume.
Related coverage:
U.S. gov't eyes "golden share" in U.S. Steel amid Nippon Steel buyout
Trump says U.S. Steel to remain under American control after deal
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