Trump breaks electoral promise, approves the sell of US Steel to Japanese interests

The acquisition of Nippon Steel’s rival was first announced in 2023. It was seen as a lifeline for US Steel, which had suffered decades of decline since the post-war years.

Once the world’s most valuable company, US Steel has long been regarded as a symbol of American industrial dominance. It was the first company to be worth $1 billion, shortly after its creation in 1901.

The agreement had previously been blocked on “national security” grounds by former US President Joe Biden in his final weeks in office.

Donald Trump had also opposed the deal during his election campaign, as U.S. Steel’s headquarters are located in the politically strategic state of Pennsylvania. However, Trump reversed his position following further concessions from the Japanese company.

To win President Trump’s approval, Nippon Steel had to commit to investing $11 billion by the end of 2028, of which $2.7 billion is already underway.

The agreement also agrees that the U.S. government will gain control over several key management decisions. In particular, it will have veto power over any decision to close a plant, or to reduce production or the workforce.

Nippon Steel has promised that the majority of board seats and key governance positions at U.S. Steel will be held by Americans.

Pennsylvania Republican Senator Dave McCormick called the buyout “a massive victory for working families, our economy, our national security and America’s industrial future”.

The metalworkers’ union (USW) continues to oppose the agreement: “Perhaps the historic USS logo will remain, but it seems it will be no more than a smoke screen to allow a wholly-owned privately held subsidiary of a Japanese corporation to be called American.” The organization also criticizes the “striking degree of personal power [obtained by Donald Trump] over the company”.