Donald Trump threw weight behind the “partnership” between US steel and Japanese steel after claiming he was “completely against” a $14.9 billion bid by Japanese companies for his US rival.
The US president has not stopped full support for the takeover, but he announced a deal between the two businesses on social media on Friday.
Trump’s predecessor, Joe Biden, blocked Japan’s acquisition of US steel, citing national security concerns during his final weeks in office. The Trump administration has since reviewed the proposal.
Under the arrangement announced by Trump on Friday, US Steel has announced plans to remain in the US headquartered in Pittsburgh and hold a “big rally” in the state next week.
“This will be a planned partnership between American steel and Nippon Steel, creating at least 70,000 jobs and adding $14 billion to the US economy,” the president argued about his social network, Truth Social. “The majority of that investment will occur in the next 14 months.”
U.S. steel shares have skyrocketed more than 21% after Trump announced it on Friday afternoon.
Nippon and US Steel did not respond immediately to requests for comment.
The United Steelworkers Coalition urged the president to refuse a bid for Japan, dismissing the company’s commitment to invest in the United States as a “fantastic promise,” claiming it “seeks to cover domestic industries from within.”
Trump’s position on Japan’s approach has changed dramatically. Just in December he declared he was vehemently opposed to the deal. “As president, I will prevent this deal from happening,” he wrote. “Buyers should be careful!!”
But by last month he had somewhat eased his stance and stated that he wanted us to stay in the US. “We don’t want to see it go to Japan,” he said.
