Trump: Nippon will invest into, not own U.S. Steel
(The Center Square) — The compromised international buyout of U.S. Steel took an unexpected turn Friday.
President Donald Trump revealed that the Japanese-owned company will back away from its $14.9 billion to acquire U.S. Steel, but rather invest money into the iconic Pittsburgh-based company.
During a joint news conference with Japanese Prime Minister Shigeru Ishiba, the president described U.S. Steel an “important company” that the nation couldn’t afford to lose – even though Nippon had promised to keep the headquarters and manufacturing facilities in southwestern Pennsylvania.
“We didn’t want to see that leave and it wouldn’t actually leave, but the concept psychologically not good,” he said. “So they’ve agreed to invest heavily into U.S. Steel as opposed to own it and that sounds very exciting.”
Although specific details were scant, part of Nippon’s standing buyout offer included a promise to invest billions in the region to upgrade and modernize steel production as companies seek to make their operations more climate-friendly.
The acquisition, first announced in December 2023, faced immediate opposition from the union leaders, then-President Joe Biden and Trump himself. The former cited national security concerns that arise when foreign competitors, like China, flood the market with cheaper, inferior products.
Federal regulators eventually punted judgement on the feasibility of the merger to Biden, who blocked it in the waning days of his administration. The two companies immediately filed lawsuits alleging political interference from the union and a domestic competitor, Cleveland-Cliffs, pressured Biden and regulators to scuttle the deal.
Disappointed but not deterred, vocal legislative proponent Kim Ward, the highest-ranking Republican in the state Senate, hoped Trump would change his mind someday.
“President Trump has always fought for America, so I had no doubt he would fight for the steelworkers and their families in southwestern Pennsylvania by taking a second look at the deal,” she said Friday. “While we are still waiting to hear the details of the potential investment, this is a positive development and is good news for the future of southwestern Pennsylvania, the steelworkers, and our heritage.
“President Trump is correcting a failure of the Biden Administration by building global alliances that benefit America while Gov. Josh Shapiro continues to remain on the sidelines.”
Ward, whose district encompasses U.S. Steel facilities, has pressured other high-ranking state officials to speak out on the deal. Namely, Gov. Josh Shapiro.
Shapiro has been tight-lipped about his preference, but has rather remained publicly neutral while he works as an arbitrator between all involved.
Christen Smith is Pennsylvania editor for The Center Square newswire service and co-host of Pennsylvania in Focus, a weekly podcast on America’s Talking Network. Recognized by Editor and Publisher Magazine as one of the media industry’s “Top 25 Under 35” in 2024.
This article was republished with permission from The Center Square.
It is good to see the United States is not selling steel production to a foreign company, as it is critical for national defense. Selling to a foreign entity could raise concerns about the security of supply chains for military and infrastructure projects. That said… let’s see what happens.
During Trump’s first term as President of the United States (2017-2021), there were several instances where foreign countries made promises of investment that did not materialize as expected. Here are a few significant examples:
China: In 2017, during a state visit by Chinese President Xi Jinping, China promised to invest $250 billion in the U.S. over the following years. However, many of these investments did not come to fruition, particularly as trade tensions escalated between the two countries.
Saudi Arabia: In 2017, during Trump’s visit to Saudi Arabia, the kingdom announced a $110 billion arms deal and promised significant investments in the U.S. However, the actual flow of investment was less than anticipated, and many of the deals were more about future intentions rather than immediate investments.
India: In 2018, Indian Prime Minister Narendra Modi expressed intentions to invest in U.S. infrastructure and other sectors. While there were some investments, the scale and impact were not as significant as initially projected.
Mexico: Trump often spoke about Mexico investing in the U.S. as part of trade negotiations, particularly regarding the U.S.-Mexico-Canada Agreement (USMCA). However, concrete investment commitments from Mexico did not materialize to the extent that was suggested.
Japan: In 2019, Japanese Prime Minister Shinzo Abe announced plans for Japanese companies to invest in the U.S. However, while some investments occurred, they did not reach the levels that were anticipated during the discussions.
These examples illustrate the complexities of international investment promises, which can be influenced by a variety of factors, including political relations, economic conditions, and changes in leadership.