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Trump Approves Major U.S. Steel–Nippon Steel Merger, Reversing Earlier Block Over Security Concerns

In a dramatic policy reversal, former President Donald Trump has officially approved the long-disputed $14.9 billion merger between U.S. Steel and Japan’s Nippon Steel. The announcement, made via Trump’s Truth Social account on Friday, clears the path for one of the most high-profile international mergers in recent years and marks a major shift in Washington’s stance on foreign investment in critical industries.

The deal, previously blocked by President Joe Biden over national security concerns, is now being positioned as a strategic “partnership” that Trump says will fuel significant economic growth and job creation in the United States.

A Boost to Jobs and the Economy

Trump claims the merger will directly create at least 70,000 jobs and inject $14 billion into the U.S. economy. While details on where those jobs will be located remain limited, a large portion of the investment is expected to roll out over the next 14 months, largely concentrated in steel-producing regions across the Midwest and Northeast.

“United States Steel and Nippon Steel will now move forward in a planned partnership that benefits both nations,” Trump posted. “This is about strengthening our industrial base and bringing steel manufacturing into the future.”

U.S. Steel to Stay in Pittsburgh

One of the biggest concerns during earlier discussions of the merger was the potential relocation of U.S. Steel’s headquarters. Trump has clarified that Pittsburgh will remain the company’s headquarters, a move likely designed to ease concerns in Pennsylvania—one of the key battleground states heading into the 2024 election cycle.

Following the announcement, U.S. Steel shares surged more than 20%, closing at $52.01 per share, reflecting strong investor confidence in the deal’s approval and its economic implications.

Background: Biden's Earlier Blockade

The merger was originally announced in late 2023, when Nippon Steel offered to acquire U.S. Steel for approximately $14.9 billion—an offer that valued U.S. Steel at a significant premium. However, in January 2024, President Biden blocked the transaction, citing risks to national security and critical infrastructure supply chains. His administration was particularly concerned about foreign control over a key American industry tied to defense, construction, and automotive manufacturing.

Industry analysts at the time noted that Biden's move aligned with growing bipartisan scrutiny over foreign ownership of strategic U.S. assets.

Trump’s Review and Policy Repositioning

Upon launching his re-election campaign, Trump ordered a fresh review of the deal in April 2025. He directed the Committee on Foreign Investment in the United States (CFIUS) to reassess the merger with a focus on its long-term industrial benefits and possible national security safeguards.

While CFIUS has not yet released its full findings publicly, Trump’s statement signals that the review has cleared major hurdles.

“The Committee concluded there is no undue risk to American interests, especially with the structural safeguards we’re putting in place,” a senior Trump campaign advisor told reporters, adding that joint oversight provisions would likely be included in the finalized agreement.

What This Means for the Steel Industry

U.S. Steel has faced mounting competitive pressures in recent years. The American steel sector, while still one of the world’s largest, has struggled to modernize in comparison to rivals in Japan, China, and Europe. Analysts suggest that the merger could bring much-needed capital, technological innovation, and global expertise to rejuvenate the company’s operations.

“Nippon brings modern production techniques and a global logistics network that could radically enhance U.S. Steel’s competitiveness,” said Jason Mott, senior analyst at Global Metals Insight. “This could help reverse a 20-year trend of domestic decline in steel output.”

According to World Steel Association data, the U.S. produced 80.7 million metric tons of crude steel in 2024—down from over 97 million tons in 2000—while Japan produced 89.2 million tons.

Political Implications and Next Steps

Trump also announced plans to hold a rally at U.S. Steel’s Pittsburgh facility on May 30, signaling the political weight this merger could carry in the election cycle. His backing of the deal contrasts with Biden’s protectionist approach and may appeal to pro-business voters and labor groups eager for revitalized manufacturing jobs.

The final transaction is expected to close in the third quarter of 2025, pending final regulatory and shareholder approvals. If successful, it will become one of the largest cross-border industrial mergers in recent U.S. history.

Bottom Line:
The Trump-approved U.S. Steel–Nippon Steel merger could reshape the American steel landscape, offering a potential lifeline to an aging industrial giant while igniting new political debates over economic nationalism, global partnerships, and the future of American manufacturing.