A general view of Nippon Steel's East Nippon Works Kimitsu Area is seen on January 7, 2025 in Kimitsu, Japan.
Trump Greenlights US Steel Merger Despite Union Warning of 'Corporate Sellout'
"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."
President Donald Trump on Friday signaled broad approval for Japanese steel giant Nippon's bid to purchase U.S. Steel, a reversal of his campaign-trail opposition to the merger that came a day after the United Steelworkers union implored the president to uphold his pledge to scrap the proposed deal.
In a post on his social media platform, Trump announced a "planned partnership" between U.S. Steel and Nippon, prompting confusion about the specific terms of the deal. U.S. Steel's stock jumped over 20% on the news, and both companies applauded the announcement and praised Trump.
The president wrote that U.S. Steel "will REMAIN in America" and keep its headquarters in Pittsburgh.
One unnamed person familiar with the merger negotiations told the Financial Times that the president's post was "considered 'tacit approval'" of the $15 billion takeover deal that was first announced in late 2023. The Biden administration blocked Nippon's proposed acquisition of U.S. Steel earlier this year, and Trump opposed the merger during his 2024 presidential campaign.
Former U.S Sen. Sherrod Brown (D-Ohio) called Trump's reversal "a betrayal of American workers.
United Steelworkers international president David McCall said in response to Trump's announcement that "we cannot speculate" about the details of the arrangement. But he reiterated the union's concerns 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."
Last month, Trump ordered the Committee on Foreign Investment in the U.S. to conduct an internal review of "potential national security risks associated with the proposed transaction." Reuters reported that the committee, which submitted its review on Wednesday, was "divided in its recommendation," but "most panel members believe any security risks posed by the deal can be addressed."
McCall on Thursday responded to the panel's recommendation with a scathing statement, warning that "allowing the sale of U.S. Steel to Nippon, a serial trade cheater, will be a disaster for American Steelworkers, our national security, and the future of American manufacturing."
"It is simply absurd to think that we could ever entrust the future of one of our most vital industries—essential to both national defense and critical infrastructure—to a company whose unfair trade practices continue to this day," said McCall. "For decades, Nippon has been dumping its products into our markets, costing us thousands of good, community-supporting jobs and undermining our steelmaking capabilities."
"Now, as it continues to make flashy promises about proposed investments, it remains clear Nippon is simply seeking to undercut our domestic industry from the inside," he continued. "President Trump has publicly pledged to block this sale since January 2024. We now urge him to act decisively, shutting the door once and for all on this corporate sellout of American Steelworkers and defending U.S. manufacturing."
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President Donald Trump on Friday signaled broad approval for Japanese steel giant Nippon's bid to purchase U.S. Steel, a reversal of his campaign-trail opposition to the merger that came a day after the United Steelworkers union implored the president to uphold his pledge to scrap the proposed deal.
In a post on his social media platform, Trump announced a "planned partnership" between U.S. Steel and Nippon, prompting confusion about the specific terms of the deal. U.S. Steel's stock jumped over 20% on the news, and both companies applauded the announcement and praised Trump.
The president wrote that U.S. Steel "will REMAIN in America" and keep its headquarters in Pittsburgh.
One unnamed person familiar with the merger negotiations told the Financial Times that the president's post was "considered 'tacit approval'" of the $15 billion takeover deal that was first announced in late 2023. The Biden administration blocked Nippon's proposed acquisition of U.S. Steel earlier this year, and Trump opposed the merger during his 2024 presidential campaign.
Former U.S Sen. Sherrod Brown (D-Ohio) called Trump's reversal "a betrayal of American workers.
United Steelworkers international president David McCall said in response to Trump's announcement that "we cannot speculate" about the details of the arrangement. But he reiterated the union's concerns 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."
Last month, Trump ordered the Committee on Foreign Investment in the U.S. to conduct an internal review of "potential national security risks associated with the proposed transaction." Reuters reported that the committee, which submitted its review on Wednesday, was "divided in its recommendation," but "most panel members believe any security risks posed by the deal can be addressed."
McCall on Thursday responded to the panel's recommendation with a scathing statement, warning that "allowing the sale of U.S. Steel to Nippon, a serial trade cheater, will be a disaster for American Steelworkers, our national security, and the future of American manufacturing."
"It is simply absurd to think that we could ever entrust the future of one of our most vital industries—essential to both national defense and critical infrastructure—to a company whose unfair trade practices continue to this day," said McCall. "For decades, Nippon has been dumping its products into our markets, costing us thousands of good, community-supporting jobs and undermining our steelmaking capabilities."
"Now, as it continues to make flashy promises about proposed investments, it remains clear Nippon is simply seeking to undercut our domestic industry from the inside," he continued. "President Trump has publicly pledged to block this sale since January 2024. We now urge him to act decisively, shutting the door once and for all on this corporate sellout of American Steelworkers and defending U.S. manufacturing."
President Donald Trump on Friday signaled broad approval for Japanese steel giant Nippon's bid to purchase U.S. Steel, a reversal of his campaign-trail opposition to the merger that came a day after the United Steelworkers union implored the president to uphold his pledge to scrap the proposed deal.
In a post on his social media platform, Trump announced a "planned partnership" between U.S. Steel and Nippon, prompting confusion about the specific terms of the deal. U.S. Steel's stock jumped over 20% on the news, and both companies applauded the announcement and praised Trump.
The president wrote that U.S. Steel "will REMAIN in America" and keep its headquarters in Pittsburgh.
One unnamed person familiar with the merger negotiations told the Financial Times that the president's post was "considered 'tacit approval'" of the $15 billion takeover deal that was first announced in late 2023. The Biden administration blocked Nippon's proposed acquisition of U.S. Steel earlier this year, and Trump opposed the merger during his 2024 presidential campaign.
Former U.S Sen. Sherrod Brown (D-Ohio) called Trump's reversal "a betrayal of American workers.
United Steelworkers international president David McCall said in response to Trump's announcement that "we cannot speculate" about the details of the arrangement. But he reiterated the union's concerns 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."
Last month, Trump ordered the Committee on Foreign Investment in the U.S. to conduct an internal review of "potential national security risks associated with the proposed transaction." Reuters reported that the committee, which submitted its review on Wednesday, was "divided in its recommendation," but "most panel members believe any security risks posed by the deal can be addressed."
McCall on Thursday responded to the panel's recommendation with a scathing statement, warning that "allowing the sale of U.S. Steel to Nippon, a serial trade cheater, will be a disaster for American Steelworkers, our national security, and the future of American manufacturing."
"It is simply absurd to think that we could ever entrust the future of one of our most vital industries—essential to both national defense and critical infrastructure—to a company whose unfair trade practices continue to this day," said McCall. "For decades, Nippon has been dumping its products into our markets, costing us thousands of good, community-supporting jobs and undermining our steelmaking capabilities."
"Now, as it continues to make flashy promises about proposed investments, it remains clear Nippon is simply seeking to undercut our domestic industry from the inside," he continued. "President Trump has publicly pledged to block this sale since January 2024. We now urge him to act decisively, shutting the door once and for all on this corporate sellout of American Steelworkers and defending U.S. manufacturing."