Shares of steelmaker US Steel skyrocketed on Friday after President Donald Trump announced his support for a “partnership” with Japan’s Nippon Steel.
Trump’s remarks are the latest in a long saga which began in December 2023, when US Steel and Nippon Steel announced plans for a $14.9 billion merger under a deal bitterly opposed by the unions.
“US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh,” the US president posted on Truth Social, adding that the “planned partnership” between America’s US Steel and Japan’s Nippon Steel would create at least 70,000 jobs and add $14 billion to the US economy.
The Pennsylvania-headquartered firm’s share price popped on the news, closing up more than 21 percent and then increasing further in after-hours trading.
It was not immediately clear what the terms of this new partnership were, and neither company, nor the White House, responded to a request for comment.
The United Steelworkers’ union (USW), which represents US Steel employees and has long opposed the deal, said it could not “speculate” on the impact of Trump’s announcement without more information.
“Our concern remains that Nippon, a foreign corporation with a long and proven track record of violating our trade laws, will further erode domestic steelmaking capacity and jeopardize thousands of good, union jobs,” USW International President David McCall said in a statement.
Nippon’s acquisition of US Steel was originally meant to close by the end of 2024’s third financial quarter, but was then held up by former president Joe Biden, who blocked it in his last weeks in office on national security grounds.
The two firms then filed a lawsuit against the Biden administration’s “illegal interference” in the transaction.
Earlier this month, Trump ordered his own review of the deal, directing the government’s Committee on Foreign Investment in the United States (CFIUS) to look into the proposed acquisition.
CFIUS, tasked with analyzing the national security implications of foreign takeovers of US companies, was given 45 days to submit its recommendations to Trump.
