Trump Signals Support for US Steel-Nippon Partnership, but Uncertainty Remains

After more than a year of lobbying and negotiations, Japan’s Nippon Steel Corp. appeared to receive a major boost in its bid to acquire United States Steel Corp. — a signal of support from President Donald Trump, Bloomberg reports.

Yet despite his public remarks, key questions remain about what exactly was endorsed and what it could mean for the future of the proposed $14.1 billion acquisition.

In a surprise announcement last week, Trump praised a “planned partnership” between the two companies, claiming it would generate at least 70,000 jobs and contribute $14 billion to the US economy. However, he stopped short of explicitly approving Nippon Steel’s full takeover of US Steel. Instead, he asserted that the company would “remain American,” offering no further details on the nature of the partnership or the deal itself.

Executives, investors, and diplomats are now left to interpret the ambiguous statement. Both Nippon Steel and US Steel responded by commending the “bold” announcement and highlighting the potential of their collaboration, though neither clarified whether Trump’s statement signals a green light for the acquisition.

Despite the uncertainty, the market responded positively. US Steel shares surged more than 21% by the end of trading Friday, after climbing as much as 26% earlier in the day, reflecting renewed investor optimism.

Trump’s recent comments mark a shift from his earlier position. In December, he expressed strong opposition to the idea of a foreign company acquiring US Steel, echoing concerns raised by the Biden administration. President Biden had previously blocked the deal in January after a national security review by the Committee on Foreign Investment in the United States (CFIUS).

If Trump now formally approves the acquisition — assuming he returns to office and exercises such authority — it would represent a significant change in stance.

The timing of Trump’s remarks also coincides with ongoing US-Japan trade discussions. Japan’s top trade negotiator, Ryosei Akazawa, met recently with US Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer in Washington. The two countries are in the midst of a third round of talks concerning trade tariffs, and Trump also reportedly spoke with Japanese Prime Minister Shigeru Ishiba by phone in recent days.

These diplomatic and economic discussions may be influencing the broader conversation around Japanese investment in American industries.

Should the acquisition proceed, Nippon Steel will face the challenge of balancing shareholder expectations with operational realities. The company may be required to maintain and operate some of US Steel’s older, less efficient facilities as part of the arrangement — a potentially costly and complex undertaking.

Nevertheless, the infusion of Japanese capital and a potential partnership with a major American steelmaker could mark a new chapter for an industry that has long struggled with global competition and aging infrastructure.