Trump celebrates Nippon Steel 'deal' with rally at Pennsylvania plant
[WEST MIFFLIN] US President Donald Trump on Friday (May 30) lauded a 'partnership' between Nippon Steel and US Steel at a political rally but stopped short of clarifying whether he planned to approve the companies' diplomatically sensitive merger.
On a Pittsburgh, Pennsylvania-area stage decorated with signs celebrating 'American steel', Trump appeared to signal he would support a long-sought tie-up between the Japanese and US companies that he once opposed.
The planned acquisition, initially floated in 2023, has divided the politically important state of Pennsylvania, its heavily unionised blue-collar workforce and introduced tension into the normally friendly US-Japanese relations.
''We're here today to celebrate a blockbuster agreement that will ensure this storied American company stays an American company,' Trump told more than 1,600 people, including hard hat-wearing workers. 'You're going to stay an American company, you know that right? But we're going to have a great partner.'
Proponents of the transaction are hoping Trump's visit would end a tumultuous 18-month effort by Nippon Steel to buy the iconic American company, beset by opposition from union leadership and two national security reviews. The White House and the companies have not responded to requests for comment on the status of deal talks.
But the deal is likely not entirely done. Trump announced the rally and appeared to endorse the merger last Friday in a social media post, sending US Steel's share price up over 20 per cent as investors bet he would soon give it the elusive greenlight.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
On Sunday, he sowed doubt, describing the deal to reporters not as the full takeover Nippon is seeking but as an investment with 'partial ownership,' and control residing in the US.
US Steel is headquartered in Pennsylvania, which symbolised both the one-time strength and the decline of US manufacturing power as the Rust Belt's steel plants and factories lost business to international rivals. The state's population swings between supporting Democrats and Republicans, making it a major prize in presidential elections.
'We would not be here today without President Trump, who has secured the company's future by approving our partnership,' said Nippon vice-chair Takahiro Mori at the Pennsylvania rally before Trump.
But in a sign of the many open questions that remain, Japan's top trade negotiator, Ryosei Akazawa, told reporters on Friday that he could not yet comment on the tie-up due to a lack of any official announcements.
'I am aware of the various reports and posts by President Trump on social media. However, there has not yet been an official announcement from the US government,' Akazawa, in Washington for tariff negotiations, said at a briefing at the Japanese Embassy in Washington.
Trump technically has until next Thursday to decide whether to formally approve or scuttle the deal, after the Committee on Foreign Investment in the US last week completed a second review of the merger. But the timeline could slip.
The road to Friday's rally has been a bumpy one.
Nippon Steel offered US$14.9 billion for US Steel in December 2023, seeking to capitalize on an expected ramp up in steel purchases, thanks to the bipartisan infrastructure law.
But the tie-up faced headwinds from the start, with both then-President Joe Biden and Trump asserting US Steel should remain American-owned as they sought to woo voters in Pennsylvania ahead of the November presidential elections. Former Vice President Kamala Harris, who became the Democratic nominee in 2024 after Biden stepped aside, also said US Steel should remain domestically owned.
Following a previous review, Biden blocked the deal in January on national security grounds.
The companies sued, arguing they did not receive a fair review process, a charge the Biden White House disputed.
The steel giants saw a new opportunity in the Trump administration, which opened a fresh 45-day national security review into the proposed merger last month.
But Trump's public comments, ranging from welcoming a simple 'investment' in US Steel by the Japanese firm to suggesting a minority stake for Nippon Steel, did little to shore up investor confidence in an eventual green light.
Reuters reported last week that Nippon Steel had floated plans to invest US$14 billion in US Steel's operations including up to US$4 billion in a new steel mill if the Trump administration green lights its merger bid, in response to requests from the government for more investment.
'This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add US$14 billion dollars to the US Economy,' Trump posted last Friday, breathing new hope into prospects for the tie-up. 'I will see you all at US Steel, in Pittsburgh, on Friday, May 30th, for a BIG Rally. CONGRATULATIONS TO ALL!' REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
Chinese economy stays challenged but some consumer stocks offer potential: BOA
[SINGAPORE] While headwinds persist for the Chinese economy and consumer confidence stays low, a select range of stocks could defy broader market trends and outperform their peers, said the Bank of America (BOA). Despite improved market sentiment, the Chinese economy remains saddled by challenged consumption growth and elevated youth unemployment alongside deflationary pressures, BOA analysts noted in a report last Thursday (May 29). However, stocks related to five themes could benefit from Chinese consumer spending, the BOA analysts said. Specifically, these are stocks that focus on the categories of health and wellness; affordable luxury; pragmatic goods and services; personal experiences and emotional value; as well as intellectual property. These 'new consumption' stocks display 'significant divergence in performance' amid softer market trends and sharply outperformed their peers in earnings growth and share prices, BOA analysts said. With clear value propositions – be it emotional value, functionality or affordability – these stocks are favoured over large-cap premium brands or market proxy players, they added. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Energy drinks, outdoor brands win on post-pandemic health, wellness focus An increased interest in health and wellness among Chinese consumers post Covid-19, has benefitted stocks focusing on these themes, BOA said. In the beverage market, energy drinks and soft drinks that focus on health and anxiety alleviation logged stronger sales growth compared to liquor or beer, the analysts noted. Outdoor brands including Amer Sports enjoyed nearly 40 per cent year-on-year growth compared to the overall domestic sportswear market, which logged sales growth only in the single-digit percentages. Online healthcare experienced 'rapid growth' fuelled by rising demand for proactive and preventive health management, and the increasing penetration of online drug purchasing. Affordable luxury gains amid deflationary environment Consumers tend to be price sensitive in deflationary environments. Within the passenger vehicle market, domestic brands nearly doubled their market share from 33 per cent in 2020 to 65 per cent in the first four months of 2025, thanks to better price-performance than European and Japanese brands, the report said. With improved product offerings, local brands in the smartphone market such as Xiaomi and Huawei have taken market share away from Apple. This trend towards affordability is reflected in travel, where short-haul and domestic trips via railways and budget airlines have been on the rise; and domestic, 'affordable luxury' hotel chains have wrestled market share away from global five-star hotels. Policy stimulus, subsidies boost demand for pragmatic items The analysts also observed an increased focus on the utility and functionality over brand names among consumers. Boosted by policy stimulus, sales for home appliances, furniture and consumer electronics rose by 20 to 25 per cent year-on-year for the first four months of 2025, outpacing overall retail sales growth, they noted. Mass market brands such as Geely, Leapmotor and XPeng are expected to outperform premium/luxury brands including Zeekr, Li Auto and Nio. Consumer willingness to spend on experiences The analysts noted that consumers are willing to invest time and money in experiences. Consumers are travelling more albeit spending less and treating themselves to 'small delights' such as new snacks, online games, cosmetics and pets. Companies such as Tencent and NetEase posted gaming revenue growth for Q1 2025. Meanwhile, Chinese snackmaker Yankershop reported 76 per cent year-on-year growth in 2024, significantly higher than that of the overall snack industry, thanks to its innovative konjac products. Co-branded products get boost from consumer spend on intellectual property BOA analysts highlighted that consumer spending on intellectual property-related goods and services – such as Labubu toys or domestic movies like Ne Zha – drives up sales for co-branded products. For instance, Pop Mart's retail sales rose by 165 to 170 per cent for Q1 of 2025, with China sales up by 95 to 100 per cent. The success of the animated movie Ne Zha 2, which contributed to around 60 per cent of China's Q1 2025 box office, also drove sales of co-branded products such as milk, teas and toys.
Straits Times
an hour ago
- Straits Times
Britain to build $2.6b in weapons factories as Starmer calls for war readiness
British Pirme Minister Keir Starmer's warning came a day before he publishes a major review of Britain's military capabilities. PHOTO: EPA-EFE Britain to build $2.6b in weapons factories as Starmer calls for war readiness LONDON – Britain must be ready to fight and win a war against states with advanced military forces, Prime Minister Keir Starmer said as his government announced a £1.5 billion (S$2.6 billion) plan to build at least six new weapons and explosives factories. Mr Starmer's warning came a day before he publishes a major review of Britain's military capabilities. Britain and countries across Europe are rapidly trying to boost their defence industries after US President Donald Trump said the continent has to take more responsibility for its own security. 'We are being directly threatened by states with advanced military forces, so we must be ready to fight and win,' Mr Starmer wrote in an article for The Sun on Sunday newspaper, citing as examples Russia's invasion of Ukraine and its cooperation with Iran and North Korea. Defence Minister John Healey announced the munitions investment programme in a BBC interview on June 1, describing it as 'a message to Moscow', as well as a way to stimulate Britain's sluggish economy. The Defence Ministry said it would procure up to 7,000 long-range weapons, built in Britain. The extra investment means Britain will spend around £6 billion on munitions in the current Parliament, the ministry said. The Sunday Times reported the government wanted to purchase US-made fighter jets capable of firing tactical nuclear weapons. The Strategic Defence Review, commissioned by Mr Starmer's Labour government shortly after it won power in July 2024, will set out the threats Britain faces and the military equipment and services needed to meet them. Mr Starmer has already committed to raise defence spending to 2.5 per cent of gross domestic product by 2027 and target a 3 per cent level over the longer term. The government has already announced a £1 billion plan to invest in artificial intelligence that can be used to enhance battlefield decision-making, and has separately committed to spend an extra £1.5 billion to tackle the poor state of housing for the country's armed forces. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
2 hours ago
- Straits Times
Leadership renewal at BG Tampines Rovers as chairman Desmond Ong steps aside
Outgoing BG Tampines Rovers chairman Desmond Ong hugging coach Gavin Lee during the medal presentation of the Singapore Cup final at Jalan Besar Stadium on May 31. ST PHOTO: ARIFFIN JAMAR SINGAPORE – For the first time since 2017, BG Tampines Rovers will see a change in leadership, after lawyer Desmond Ong stepped down as chairman of the Singapore Premier League (SPL) side to make way for Japanese investment banker Shungo Sakamoto. Ong, 56, told The Straits Times that Sakamoto, who has been the Stags' vice-chairman since 2024 after joining the management committee in 2023, became the new chairman on June 1. Ong will still be a member of the club's management committee. Desmond Ong (far left) has handed over the chairmanship of BG Tampines Rovers to Shungo Sakamoto ST PHOTO: DEEPANRAJ GANESAN In an interview with ST shortly after the Stags lost 1-0 to the Lion City Sailors in the Singapore Cup final at Jalan Besar Stadium on May 31, Ong said leadership renewal has been in the works as he was at the helm for almost eight years. Ong, a managing partner of law firm Solitaire LLP, said: 'I've always wanted to step away as soon as we found the right person to take over. Over the years, there have been people who have indicated their interest in wanting to come in and take over, but this was the right time and we have (found) the right person. 'In his own way, he's shown to be cerebral and passionate and he has supported local football for a number of years. So I'm very confident and comfortable that the club will be in very good hands under his stewardship.' Ong also clarified that stepping down as Stags chairman was not due to his new role with the Football Association of Singapore (FAS) – in April, he became deputy president of the new FAS council for the 2025-29 term. Sakamoto, 38, a Japanese citizen who immigrated to Singapore in 2019, is not the first foreigner to be a club chairman here. Current Albirex Niigata chairman Daisuke Korenaga is also Japanese. Sakamoto is the executive director and founder of investment company Sakamoto Capital. Previously known as Black Clover, the firm has been a sponsor of both Albirex and the Stags for the 2023 and 2024-25 campaigns. A social footballer, Sakamoto has spent the past few years helping to arrange casual football competitions among Japanese expats. It was through these social matches that he was introduced to the Albirex hierarchy before befriending Tampines midfielder Kyoga Nakamura, who introduced him to the Stags' management committee. Sakamoto said he is eager to build on the club's foundation, tap on the partnerships – such as the three-year collaboration with Thailand's BG Pathum inked in 2023 – and bring about benefits with his own connections to Japanese football. He is confident that the Stags will continue to push the Sailors and has set his sights on winning the SPL in the coming years. Their last league title was in 2013. In the latest campaign, Tampines were runners-up in the Singapore Cup and the SPL, where they finished eight points behind the Sailors. 'We want to beat the Sailors, to be the No. 1 team in Singapore, and I want more fans to support us and, hopefully in the future, our home stadium is always crowded,' said Sakamoto. Meanwhile, Ong admitted he had not expected to stay as club chairman for so long. He expressed happiness in helping to build a consistent pipeline of national players. He highlighted the bold decision to offer long-term contracts to players as a way to improve job stability. He is proud of keeping the club competitive domestically and representing the nation in continental competitions despite financial limitations. The Stags, whose last major trophy was the Singapore Cup in 2019, have finished in the top three of the SPL since the 2022 season. Ong said when he replaced lawyer Krishna Ramachandra in 2017, the club were $3 million in debt. Together with his committee members, they worked hard to reduce it. As a result of him putting his own money into the club, the bulk of the debt is owed to Ong, who is comfortable with the arrangement as it allows the club to operate without external financial pressure. He also praised his coaching staff and management team for consistently punching above their weight. He then delivered a farewell jab, saying: 'Whenever anybody loses to us, they say 'Tampines is so well resourced, they are a rich club'. I say to them show me your books and I'll show you my books. We get the same subvention as everyone else. 'A lot of our players became national players on my watch. So to all the people out there who are tempted to say that we are a rich club who only sign national players, can you please come look for me, show the books and then we can compare.' Join ST's Telegram channel and get the latest breaking news delivered to you.
