U.S. Steel’s Clairton Coke Works (Photo via Pittsburgh City Paper).
Japanese steelmaker Nippon Steel will provide an investment in Pittsburgh-based U.S. Steel rather than continuing to pursue a $15 billion purchase of the former icon of American industrial might, President Donald Trump said Friday.
Trump made the announcement in a White House news conference at the conclusion of trade talks with Japanese Prime Minister Shigeru Ishiba. Trump said details of the investment by Nippon Steel, which he mistakenly identified as Japanese automaker Nissan, would be worked out in upcoming meetings between the companies.
U.S. Steel announced it was entertaining an offer from Nippon in December 2023.
Like former President Joe Biden, Trump had said he planned to block the purchase. On Friday, he said an investment was preferable to Nippon’s proposed purchase.
“It was the greatest company in the world for 15 years, many years ago, 80 years ago, and we didn’t want to see that leave, and it wouldn’t actually leave, but the concept — psychologically not good,” Trump said. “So they’ve agreed to invest heavily in U.S. Steel, as opposed to own it, and that sounds very exciting.”
In March, Biden said it was “vital” that the 122-year-old company remain in American hands, a stance he reiterated in an April visit to the United Steelworkers’ headquarters in Pittsburgh. The union has opposed the acquisition.
Since then, the purchase has been opposed by others including former U.S. Sen. Bob Casey and his Democratic colleague Sen. John Fetterman, and U.S. Rep. Chris Diluzio (D-17th-District). They called on U.S. Treasury Secretary Janet Yellen, who serves as the chair of the Committee on Foreign Investment in the United States (CFIUS), to block it.
The United Steelworkers union, which represents around 10,000 U.S. Steel employees, said Friday that it had not heard from either company or the Trump administration about the reported investment agreement.
“Our concerns regarding Nippon’s continued interest in U.S. Steel remain unchanged. Nippon has proven itself to be a serial trade cheater with a history of dumping its products into our markets,” the union said in a statement. “While we await the details of the proposed investment, we encourage President Trump to continue safeguarding the long-term future of the domestic steel industry by instead seeking American alternatives. Regardless of what comes next, we will continue our work to protect the best interests of our members and communities.”
Pennsylvania Gov. Josh Shapiro has aligned his position with that of the United Steelworkers, saying in July that if the union wasn’t happy with the deal, he wasn’t happy.
On Friday, Shapiro’s office said his focus remained on protecting jobs.
“For over 14 months, Governor Shapiro has worked to bring all parties together behind a long-term solution that would protect Pennsylvania jobs, stand up for Pennsylvania workers, and ensure the future of American steelmaking runs through Western Pennsylvania. Governor Shapiro remains focused on those priorities – and we look forward to reviewing the details of the potential investment announced today,” the governor’s office said in a statement.
State Senate President Pro Tempore Kim Ward (R-Westmoreland), whose district abuts the Pittsburgh suburbs where U.S. Steel’s Mon Valley Works are located, has said both that she supported the sale and the investment it would bring and sided with Trump when said he would block the deal. Regardless of her position on the nature of the transaction, Ward maintained her focus was on protecting and creating jobs in southwest Pennsylvania.
“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,” Ward said in a statement 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.”
In the news conference, Ishiba spoke about an agreement with Trump on a $1 trillion investment in U.S. industry and Japan’s purchase of commodities from the U.S. including liquified natural gas, bioethanol and ammonia. Ishiba said the investment in U.S. Steel and deployment of Japanese technology would result in better quality products. Ishiba described it as “the biggest result” of his meeting with Trump.
“U.S. Steel will make products which will contribute not only to the United States and Japan, but also to the whole world,” Ishiba said. “It is not one sided. It will be reciprocal. It will be mutually beneficial.”