Trump Says U.S. Will Retain Control Over U.S. Steel in Revised Nippon Deal

26 May 2025

Nippon Steel logo is displayed at the company's headquarters in Tokyo. REUTERS/Issei Kato

In a significant policy shift, former President Donald Trump announced that the United States will maintain control over U.S. Steel as part of a revised acquisition agreement with Japan’s Nippon Steel. The $14.9 billion merger deal had been previously met with political resistance and strong opposition from labor unions over national security and job preservation concerns.

Speaking at a campaign event in Pennsylvania on May 26, Trump emphasized that the new terms of the agreement will ensure that U.S. Steel remains under American control. "We’re going to keep it in the United States. We will control it. Otherwise, I wouldn’t allow it," he told supporters, marking a stark departure from his earlier opposition to the deal when it was announced in December 2023.

Nippon Steel, one of the world’s largest steelmakers, initially offered to buy U.S. Steel to expand its global footprint and secure better access to American markets. The original bid was met with bipartisan criticism, with lawmakers raising alarms about a key American industrial asset potentially falling under foreign ownership. The United Steelworkers union, representing many of U.S. Steel’s employees, was especially vocal in opposing the deal, citing risks to American jobs and the autonomy of domestic manufacturing.

Under the newly outlined arrangement, Nippon Steel will still invest approximately $14 billion into U.S. Steel’s operations, including up to $4 billion to build a new advanced steel mill in the U.S. The updated deal reportedly includes stipulations to protect American jobs and supply chains. Trump’s endorsement suggests that these additional safeguards may have addressed the initial security and labor concerns that prompted the backlash.

Supporters of the deal argue that the merger could lead to a significant expansion in U.S. Steel’s production capabilities and technological advancements. It's projected that the investment could result in the creation of more than 70,000 jobs across the U.S. steel industry, potentially revitalizing industrial regions and enhancing competitiveness on the global stage.

Despite Trump’s endorsement, the United Steelworkers union remains wary. The union reiterated its plea for a full halt to the acquisition and continues to push for a domestic buyer for U.S. Steel. “We appreciate the intention to preserve American control, but we are skeptical about how that will be enforced in practice,” a union spokesperson said in response to Trump’s comments.

Meanwhile, a U.S. national security panel has submitted its recommendation to the president regarding the Nippon Steel deal, though details of the report have not been made public. The review was conducted as part of the Committee on Foreign Investment in the United States (CFIUS), which assesses potential national security risks of foreign acquisitions.

If finalized, the merger would position the combined entity as the third-largest steel producer globally, trailing only China’s Baowu Steel and ArcelorMittal of Luxembourg. Industry experts note that the deal could set a precedent for future foreign investments in critical U.S. infrastructure, especially during an election season where economic nationalism remains a potent theme.

For now, Trump’s backing of the restructured deal appears to move the acquisition closer to final approval, though legal and regulatory hurdles may still lie ahead. Both companies have expressed optimism that the merger will conclude before the end of 2025, contingent on regulatory approvals and labor negotiations.