Steel Giants Unite: $14B Pact Fuels US Jobs

• Trump approved US Steel’s US$14.9B partnership with Japan’s Nippon Steel.

• The deal boosts jobs, production, and protects national interests with government oversight.

By Kenzie Aryasatya, Fayza Nawra Avanitanya, Muthia Noor Safitri, Imam Fakhri Prayogo Harianto 

May 30, 2025 at 16:30 GMT+7

President Donald Trump has approved a new partnership between US Steel and Japan’s Nippon Steel, after it was blocked earlier by President Joe Biden. Biden had rejected the US$14.9 billion deal in January due to national security concerns, stating that it could impact critical supply chains.

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The deal was reviewed in April and has now been supported by Trump. “This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add US$14 billion to the U.S. Economy”, added Trump, stressing that this is a planned partnership and not a merger.

With its headquarters in Pittsburgh, US Steel will still be American based. After Trump’s announcement, US Steel’s stock price jumped over 20 percent, closing at US$52.01, its highest level since 2011.

America and Japanese Flag | Source: ISTOCK

The US Steel deal with Nippon Steel has brought multiple strategic plans to enhance the competitiveness and strengthen the steel industry performance in the US.

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Most of the investment will happen over the next 14 months, which focuses on upgrading facilities and increasing outputs. By combining their resources, the companies are aiming to strengthen supply chains and improve operational efficiency, making US Steel and Nippon Steel more competitive in the global market.

The partnership also honors existing union contracts which helps support stability for workers. Overall, the agreement focuses on long term growth and maintaining industrial stability.

Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan | Source: Reuters

The deal allows the US government to keep shares or a special “golden share” that gives it veto power over important company decisions. This structure is meant to ensure American control over important strategic choices like production levels and management appointments, balancing foreign investment with national security concerns.

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By maintaining this oversight, the US can welcome Nippon Steel’s investment while protecting critical supply chains and the nation’s industrial capacity. This approach reflects the effort to allow foreign expertise and capital without losing control of a major American steel company.

The idea of a “golden share” and possible government board presence has been reported as a way to safeguard national interests while enabling the partnership to move forward. This balance aims to protect the economy and security priorities effectively.

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Source:

Reuters CNBC