Trump announces 'planned partnership' between U.S. Steel, Nippon Steel

President Donald Trump on Friday announced an agreement between U.S. Steel and Nippon Steel, which both steelmakers have confirmed.

“I am proud to announce that, after much consideration and negotiation, U.S. Steel will REMAIN in America and keep its headquarters in the great city of Pittsburgh,” the president wrote on his social media platform, Truth Social. “This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs and add $14 billion dollars to the U.S. economy.”

The $14 billion figure likely refers to pledged investments by Nippon, including $4 billion for a new electric arc furnace mini mill at an undetermined location and $2.4 billion for facilities in Pennsylvania. At least $1 billion is earmarked, the Japanese steelmaker has said, to replace or improve a hot strip mill at Mon Valley Works.

Trump said in his post the bulk of the investment will happen in the next 14 months.

Nippon initially promised only $1.4 billion for facility upgrades.

Nippon Steel released a statement through spokesman Jack Coster of the communications firm Teneo:

“Nippon Steel applauds President Trump for his bold action to approve our partnership with U. S. Steel. We share the Trump administration’s commitment to protecting American workers, the American steel industry and America’s national security.

“The partnership between Nippon Steel and U. S. Steel is a game-changer — for U.S. Steel and all of its stakeholders, including the American steel industry and the broader American manufacturing base.”

U.S. Steel sent a statement from its communications office:

“President Trump is a bold leader and businessman who knows how to get the best deal for America, American workers and American manufacturing.

“U. S. Steel will remain American, and we will grow bigger and strong through a partnership with Nippon Steel that brings massive investment, new technologies and thousands of jobs over the next four years.

“U. S. Steel greatly appreciated President Trump’s leadership and personal attention to the futures of thousands of steelworkers and our iconic company.“

Former President Joe Biden blocked a $14.9 billion sale of U.S. Steel to Nippon in January on national security grounds. The Truth Social post from Trump makes no mention of what will become of that offer, or whether the “partnership” refers to an acquisition.

The move comes two days after the Committee on Foreign Investment in the United States filed a report on the possible national security risks, at Trump’s request. The secretive panel reportedly failed to reach a consensus, much the same outcome as its prior review under Biden.

Thank-you messages to Trump poured in from Republican lawmakers after the news broke.

“This partnership is great for the economy, great for national security and great for the hardworking people of Pennsylvania,” said U.S. Sen. Dave McCormick, a Republican from Pennsylvania. “I am proud to stand by President Trump as he lives up to our shared promise to rebuild U.S. manufacturing and deliver for American workers.”

U.S. Rep. Dan Meuser, R-Pottsville, said Trump blessing the agreement after getting national security feedback proved “it was more of a threat if we don’t build steel in America.”

State Sen. Kim Ward, R-Hempfield, praised the partnership as marking “a great day for Western Pennsylvania.”

Some Democrats signaled approval, too. Gov. Josh Shapiro said he spoke with Trump about U.S. Steel in recent days. Now that the president “has expressed support for the deal,” as Shapiro put it, “we have the opportunity to deliver historic investments, ensure the future of American steelmaking continues to run through the Mon Valley … and have our workers, right here in Pennsylvania, continue leading the world with their skill and innovation.”

Cooperation between U.S. Steel and Nippon also has the support of many business and industry groups.

Allegheny Conference CEO Stefani Pashman said she was eager to work with Nippon toward regional economic growth, and celebrated the company’s investments as a testament to the area’s energy assets, skilled workforce and strategic location.

“We can now unify around the company’s bright future, benefiting from the expertise, innovation and investment Nippon will bring our region,” Pashman added.

For the United Steelworkers union, which represents more than 3,000 employees at the Mon Valley Works, word of Nippon having a role in U.S. Steel’s operations comes as a bitter defeat. Union leadership opposed the deal and doubted investment pledges since the start, though a large portion of rank-and-file members warmed to Nippon over time.

“We cannot speculate about the impact of today’s announcement without more information,” union spokesperson Jess Kamm said. “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.”

Allegheny County Executive Sara Innamorato released a detailed statement cautiously welcoming the deal:

“Steel operations in the Mon Valley and reducing air pollution are both important to Allegheny County’s economic future.

“Now that the Trump administration has indicated a deal can move forward, we want to see Nippon commit to investing in the workers and honor the collective bargaining agreements now and in the future; be a good community partner with Mon Valley residents and work with county and local government to build a future where everyone can thrive; and invest in new technologies and infrastructure on site to modernize the campus, put local people to work, and improve air quality.

“If Nippon can meet those criteria, we welcome them to Allegheny County. I am committed to working collaboratively with all partners to make sure the Mon Valley is invested in and has the resources it needs.”

The president said he will hold a rally May 30 in Pittsburgh, but did not give an exact location.