Trump announces “partnership” between U.S. Steel and Japan-based Nippon Steel

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President Trump announced on Friday that U.S. Steel will be keeping its headquarters in Pittsburgh as part of a strategic partnership with Japan-based Nippon Steel. The nearly $15 billion bid by Nippon Steel to acquire U.S. Steel was previously blocked by former President Joe Biden and underwent a national security review under the Trump administration.

In a post on Truth Social, President Trump stated, “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. This planned partnership between United States Steel and Nippon Steel will create at least 70,000 jobs and add $14 billion dollars to the U.S. Economy.”

Following the announcement, shares of U.S. Steel surged by 21% and continued to rise in aftermarket trading. President Trump also revealed plans for a “BIG Rally” at U.S. Steel in Pittsburgh on May 30.

Both U.S. Steel and Nippon Steel have expressed their support for the partnership, with U.S. Steel stating, “U. S. Steel will remain American, and we will grow bigger and stronger through a partnership with Nippon Steel that brings massive investment, new technologies, and thousands of jobs over the next four years.”

Nippon Steel applauded President Trump for approving the partnership, emphasizing their commitment to American workers, the steel industry, and national security. The terms of the deal and ownership structure of U.S. Steel under the arrangement were not immediately disclosed.

Nippon Steel’s Bid to Buy U.S. Steel

Nippon Steel’s bid to acquire U.S. Steel included plans to retain its headquarters and invest in upgrading facilities in Pennsylvania and Indiana. U.S. Steel’s CEO had previously warned of potential pivoting away if the deal fell through.

The bid, approved by U.S. Steel’s board and stockholders, faced opposition from the United Steelworkers union. President Trump and former President Biden both opposed the deal, leading to its initial blockage before the recent approval.

In February, President Trump hinted at Nippon Steel investing in U.S. Steel rather than acquiring it outright. The negotiation process reportedly included discussions on various proposals, with the goal of strengthening U.S. Steel as a wholly-owned subsidiary of Nippon Steel.