Initially proposed as an outright takeover of US Steel by Nippon Steel, President Trump is now presenting it as a partnership between the two companies and, in many ways, between their respective nations.
President Trump recently declared his public support for a deal between American company US Steel and Japanese company Nippon Steel.
First proposed back in late 2023, the potential merger between the two companies has been the source of great controversy, with former President Joe Biden even blocking the deal on national security grounds and many, including Trump himself, recoiling at the idea of such an iconic American company as US Steel falling into foreign hands.
However, as I wrote in this column in July of last year, despite the understandable concerns presented, if done correctly and under certain conditions, this deal could potentially not only save US Steel but also serve to catalyze America’s industrial renewal while providing a template for future foreign investment.
In registering his approval for the deal, President Trump has come to view it similarly and, if anything, has vastly improved its terms for America.
Initially proposed as an outright takeover of US Steel by Nippon, President Trump is now presenting it as a partnership between the two companies and, in many ways, between their respective nations.
Although the specifics have yet to be fully disclosed and are still being finalized at the time of this writing, Nippon reportedly plans to invest $14 billion in US Steel’s operations, including $4 billion in a new steel mill. The combined entity will have an American CEO and a US-majority board.
According to President Trump, this partnership is expected to create 70,000 jobs.
To ensure Nippon’s promises are kept, the US government may reportedly hold a “golden share” in the combined entity, providing the United States with a measure of control over it, including who is appointed to the company’s board and even potential veto authority over management decisions that are not in the United States’ interests.
Trump has stated, and rightfully so, that without America having this level of control, he would not move forward with the deal.