Trump announces U.S. Steel, Nippon Steel ‘planned partnership’

President Donald Trump revealed on Friday that U.S. Steel and Nippon Steel will establish a “planned partnership,” ensuring the American company remains headquartered in Pittsburgh instead of relocating to Japan. The Tokyo-based steelmaker’s $14.9 billion bid to acquire its U.S. rival was rejected on national security grounds before President Joe Biden took office on Jan. 3. Described as a purchase by Nippon Steel and a merger by CNBC, U.S. Steel, established in 1901, has around 22,000 employees and earned $15.6 billion in revenue in 2024. Meanwhile, Nippon Steel, tracing its origins back to Japan Iron & Steel Co. in 1934, employs about 113,640 workers and generated $43 billion in revenue in 2019. Trump announced the news on social media, highlighting that the partnership will bring at least 70,000 jobs and inject $14 billion into the U.S. economy, with the majority of the investment expected within the next 14 months. Specific details of the partnership were not provided. The president also mentioned planning a significant rally at U.S. Steel in Pittsburgh on May 30. Aside from Pittsburgh, U.S. Steel operates mills in Gary, Ind.; Ecorse, Mich.; and Granite City, Ill. Trump’s announcement caused U.S. Steel shares to surge by 21.9% to $52.01 at the end of trading on Friday. In April, Trump initiated a fresh assessment of the proposed acquisition, tasking the Committee on Foreign Investment in the United States to evaluate if further action was necessary. The rejection of the purchase by Biden was based on safeguarding national security and critical supply chains. Following the rejection, Trump reinstated a 25% tariff on steel and raised the aluminum tariff from 10% to 25%. Exemptions were granted to several countries as per the order. Trump emphasized the need to prevent the U.S. from relying on foreign sources during national emergencies, citing the influx of subsidized steel and aluminum from other nations into the American market.