President Donald Trump on Friday touted the steel deal that will allow Nippon Steel to invest in U.S. Steel without an outright acquisition of the company during a rally with steelworkers in West Mifflin, Pennsylvania.
Nippon Steel initially proposed buying U.S. Steel in 2023 for $14.9 billion, but the deal was put on hold due to political opposition. Former President Joe Biden blocked the deal on national security grounds in January before leaving office, though the two companies filed a lawsuit arguing the process by the Committee on Foreign Investment in the U.S. (CFIUS) was unfair.
Trump’s administration launched a fresh review of the deal in April and the president himself recently signaled support for the deal, writing in a May 23 social media post that a partnership will allow Nippon Steel to invest without taking full ownership of U.S. Steel. Trump approved Nippon Steel’s partnership with U.S. Steel, calling it “a blockbuster agreement” that ensures the company “stays an American company.”
Speaking Friday at the Mon Valley Works Irvin Plant outside Pittsburgh, Trump assured workers that “there will be no layoffs and no outsourcing whatsoever,” and announced that he will double tariffs on foreign steel to 50% while “every U.S. steelworker will soon receive a well-deserved $5,000 bonus.”
He further praised the gathered steelworkers saying, “You’ve gone through a lot.”
“This is a big deal today. This is a big deal,” added Trump. “You know, I have to tell you about Nippon. They kept asking me over and I kept rejecting it. No way, no way, no way. And after about four times, I said, you know, these people really want to do a great thing… And you’re going to have control.”
TRUMP TOUTS ‘PARTNERSHIP’ IN STEEL DEAL WITH NIPPON: ‘US STEEL WILL REMAIN IN AMERICA’
“You’re going to maintain control… Every time they came in, the deal got better and better and better for the workers, because I didn’t give a damn about anybody else.”
He stressed U.S. Steel’s commitment to its roots, saying, “It will keep its headquarters in the great city of Pittsburgh, Pennsylvania, where it belongs.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| X | UNITED STATES STEEL CORP. | 53.82 | +0.60 | +1.13% |
U.S. Steel is also expected to keep its name and Pittsburgh headquarters, as well as its leadership team. Nippon previously said it would invest billions in upgrading U.S. Steel facilities in the Pittsburgh area’s Monongahela Valley as well as the Gary Works in Indiana.
TRUMP’S 25% TARIFF INCREASE ON ALL STEEL, ALUMINUM IMPORTS TAKES EFFECT, PROMPTING RETALIATION FROM EUROPE
Reflecting on the company’s past struggles and the role of tariffs under his previous administration, Trump said, “All the steel companies were going south. They were all in trouble. [U.S. Steel CEO Dave Burritt] said, ‘If you could get tariffs, sir, and save this company’… We put 25% tariffs on your company. So we had protection… and we saved it.”
He added, “For generations, the name United States Steel was synonymous with greatness. And now it will again be synonymous with greatness… The best and strongest steel on earth will forever be made in America and made in Pennsylvania.”
Last year, U.S. Steel CEO David Burritt told The Wall Street Journal that Nippon’s pledge to invest $3 billion to upgrade the facilities was needed to keep the company competitive. He added that the company “wouldn’t do that if the deal falls through” because it lacked the funds to make such an investment.
At the rally, Trump told the crowd, “You’re going to be happy. You’re going to be happy. It’s a lot of money coming your way… You’re going to say, ‘Please, sir, we don’t want this kind of success. It’s too much.’ But we do, really, don’t we?”
Read the full article here
