May 23 (UPI) — President Donald Trump announced Friday afternoon that U.S. Steel and Nippon Steel will form a “planned partnership,” keeping the American company’s headquarters in Pittsburgh rather than in Japan.
The Tokyo-based steelmaker’s $14.9 billion bid to acquire its U.S. rival was blocked on national security grounds before President Joe Biden left office on Jan. 3.
Politico described it as a purchase by Nippon Steel, and CNBC as a merger. U.S. Steel, which was founded in 1901, has about 22,000 employees with revenue of $15.6 billion in 2024. Nippon, which traces its roots to Japan Iron & Steel Co. in 1934, has about 113,640 workers with revenue of $43 billion in 2019.
“I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” Trump posted on Truth Social. “For many years, the name, ‘United States Steel’ was synonymous with Greatness, and now, it will be again.”
He said the partnership will create at least 70,000 jobs and add $14 billion to the U.S. economy, with the bulk of the investment in the next 14 months. He gave no details on the partnership.
“This is the largest Investment in the History of the Commonwealth of Pennsylvania,” he wrote.”My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA. From Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE is BACK.”
He said he is planning “a BIG Rally” at U.S. Steel in Pittsburgh on May 30.
Besides Pittsburgh, U.S. Steel has mills in Gary, Ind.; Ecorse, Mich.; and Granite City, Ill.
“CONGRATULATIONS TO ALL!” he ended the post.
U.S. Steel shares rose 21.9% to $52.01 at closing Friday on the New York Stock Exchange. Trump disclosed the news at 3:25 p.m., 35 minutes before closing.
In April, Trump ordered a new review of the proposed acquisition, directing the Committee on Foreign Investment in the United States to determine “whether further action in this matter may be appropriate.” CFIUS is made up of the departments of the Treasury and Justice and other critical agencies.
Cleveland-Cliffs Inc., which lost out to Nippon in its bid to purchase U.S. Steel, has since purchased a Canadian steel producer.
The deal was first announced in December 2023.
In rejecting the purchase, Biden said: “This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chain
“It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this viral American company.”
On Feb. 11, Trump restored a 25% tariff on steel and increased the aluminum tariff from 10% to 25%.
Argentina, Australia, Brazil, Canada, Japan, Mexico, South Korea, the European Union, Ukraine and Britain had received exemptions, “which prevented the tariffs from being effective,” according to the order.
“Foreign nations have been flooding the United States market with cheap steel and aluminum, often subsidized by their governments,” Trump wrote.
“The United States does not want to be in a position where it would be unable to meet demand for national defense and critical infrastructure in a national emergency.”
On April 2, Trump announced reciprocal tariffs on the worst trading partner offenders, including 24% against Japan, but one week later paused them for 90 days.