Japan’s Nippon Steel aims to buy U.S. Steel for $14.9 billion, but confusion over Trump’s “partnership” remarks and job claims has investors and industry leaders scrambling for clarity.
At a Glance
- Nippon Steel has bid $14.9 billion for U.S. Steel, offering $55 per share
- President Trump endorsed the deal, claiming it would create 70,000 jobs
- Market reacted positively, but U.S. Steel stock remains below offer price
- Trump’s use of the word “partnership” sparked confusion over deal terms
- Nippon Steel aims to become world’s third-largest producer by volume
Trump’s Backing Launches Deal—and Doubts
Nippon Steel’s proposed acquisition of U.S. Steel suddenly jumped from boardroom headlines to national conversation after Donald Trump publicly backed the deal, calling it a “strategic partnership” that would create 70,000 jobs and generate $14 billion in new U.S. investments. U.S. Steel stock shot up 21% in response, yet still fell short of the $55-per-share offer—reflecting skepticism about the deal’s final structure and political baggage.
Watch a report: Nippon Steel’s U.S. Bid Stuns Wall Street
But what exactly is being endorsed? Trump described the deal as a “partnership” and promised U.S. control over U.S. Steel would be preserved. This language muddied what was originally proposed as a full buyout by Nippon in December 2023. The White House has not clarified if the transaction has been restructured, leaving investors and industry watchdogs with more questions than answers.
A Japanese Power Play
For Tokyo-based Nippon Steel, the stakes are enormous. The company plans to boost annual output from 63 million to 86 million metric tons, vaulting the merged entity into third place globally behind Chinese giants. U.S. Steel’s foothold in North America gives Nippon immediate access to a premium market—without the headaches of starting from scratch.
“The benefits of gaining access to the growing U.S. market are enormous,” said strategist Masayuki Kubota.
Money In, Questions Out
Even with a glowing endorsement from Trump and sharp rallies in both companies’ stock prices—Nippon shares rose 7.4% on May 26—financial analysts are cautious. A deal of this size comes with serious debt exposure and political risk, especially during a volatile election cycle.
“While the news is positive for Nippon Steel’s business development, the increase in spending is worrisome,” warned analyst Hiroyasu Mori, echoing broader concerns over the deal’s financial sustainability.
What’s Next?
With President Trump promising that U.S. Steel’s headquarters will remain in Pittsburgh, political optics are clearly at play. However, actual merger conditions—including foreign ownership approval by the Committee on Foreign Investment in the United States (CFIUS)—remain unresolved.
Trump’s framing of the deal as a “win for American workers” could serve as both campaign message and regulatory shield, but skepticism persists. If the deal is revised into a joint venture rather than a full takeover, Nippon Steel could face delays in achieving its global expansion targets.
Either way, the deal marks a historic moment: one of America’s most iconic industrial brands, potentially under Japanese ownership, backed by a U.S. President, amid a contentious election year.
And as the steel giants maneuver behind closed doors, the broader industry braces for ripple effects on competition, pricing, and national industrial policy.
