Michael Stelzig: Almost there for Nippon Steel-US Steel deal

As a Pittsburgh native, I was relieved to hear that President Trump decided to reconsider the Nippon-U.S. Steel deal he once opposed. No longer subject to election-year politics, the Committee on Foreign Investment in the United States recently submitted its national security review to the president. On May 30, during the president’s visit to Pittsburgh, I was further relieved to hear that he now supports the deal. I am optimistic that under this administration, this deal will deepen our close ties with Japan, arguably our most important Indo-Pacific treaty ally.

I know by heart the importance of the steel industry for the local communities here. For decades, my family has benefited from the steel industry in the greater Pittsburgh area. My grandfather worked at J&L Steel from age 13 until he retired, and my father was a lifelong Boilermaker. As a retired U.S. Army colonel who spent most of my military career in the Asia-­Pacific working on national security matters, I also know by heart the importance of Japan as a treaty ally not only for our national security posture, but also for our economic prosperity.

I believe the proposed merger should be approved because of the high economic benefit and low threat to national security. I have been a consistent supporter of this deal since it was initially announced about a year and a half ago. The transaction would inject $14.9 billion worth of capital into the American economy to purchase U.S. Steel. Nippon Steel offered up to $7 billion in additional investments to upgrade and modernize U.S. Steel’s factories, plus another $4 billion to build a new steel mill. Just in terms of numbers alone, this deal is worth almost $26 billion in investments for the domestic steel sector. This is a once-in-a-lifetime opportunity for Pennsylvania and American manufacturing that we should seize upon.

Trump astutely recognizes the importance of Japan as an ally. Japan was the first Asian country that he held a summit with in 2025, where he and Prime Minister Ishiba Shigeru promised to “pursue a new golden age for U.S.-Japan relations.” But even such a critical and tight-knit alliance is bound to have its turbulence. Guided by his “America First” principles, Trump has questioned Japan’s reciprocation for America’s security guarantees and, perhaps more notably, imposed a 24% tariff on Japanese imports, which for now has been lowered to 10% while the two governments negotiate. The president’s application of base line and reciprocal tariffs undoubtedly injected some tension into the alliance, but his recent decision to pause them for 90 days and to reconsider the Nippon Steel offer can alleviate some of these uncertainties that trickle down to our day-to-day lives.

If it persists, the 25% tariff, now possibly 50% tariff, on imported steel is likely going to hurt the bottom lines of small-business owners in Pennsylvania and beyond. However, this merger can offset some of these changes. The approval of this deal offers Japan an opportunity to avoid the tariffs on imported steel and soothe the worries of everyday Americans by producing the steel here on U.S. soil.

For example, Nippon promised to invest at least $1 billion in U.S. Steel’s Mon Valley Works facilities. This investment will be used to modernize, streamline and improve productivity of these old facilities. Enhanced production processes and no 25% or 50% tariffs on steel “made in America” will surely lower costs and benefit small business owners that buy steel from these locations. Therefore, the merger closely aligns with the president’s intention behind tariffs, which is to encourage foreign partners to onshore more of their operations and reduce our reliance on imports.

This deal is now in its final stages. Actions speak louder than words. I am proud to see our elected leaders act on their promises, working to revive American industry. This proposed steel deal will be a game-changer for Pennsylvania. Trump now has an opportunity to officially finalize this deal and realize his “American first” investment policy.

Col. Michael Stelzig, U.S. Army Retired, served as a foreign policy specialist with extensive experience gained during assignments at U.S. Indo-Pacific Command, Thailand, Afghanistan, Philippines, and finally as the Defense Attaché to Cambodia.