Nippon Steel’s Acquisition To Be Approved: Deal Should Be a Symbol of Japan-U.S. Economic Cooperation

Editorial

14:30 JST, May 25, 2025

In relation to Nippon Steel Corp.’s plan to acquire U.S. Steel Corp., U.S. President Donald Trump has indicated he intends to approve a “planned partnership” between the Japanese company and the major U.S. steel manufacturer.

It is important to proceed carefully with negotiations toward a final decision while ensuring that the deal becomes a success that symbolizes the importance of economic cooperation between Japan and the United States.

In a post on social media about Nippon Steel’s acquisition plan, Trump said, “This will be a planned partnership … which will create at least 70,000 jobs and add $14 Billion [about ¥2 trillion] to the U.S. Economy.”

He explained that Nippon Steel will make most of its investment within the next 14 months and U.S. Steel’s headquarters will remain in Pittsburgh. Trump added that he would visit the city on Friday.

Nippon Steel issued a statement that said it “applauds President Trump for his bold action to approve our partnership with U.S. Steel.” With companies around the world suffering from China’s overproduction and low-price offensive, this alliance between two steel companies representing Japan and the United States is of immense significance.

Trump has said reviving U.S. manufacturing is his top policy priority. If he has decided that Nippon Steel’s proposal could lead to increased employment and improved competitiveness, it could mark a groundbreaking development.

Nippon Steel plans to provide U.S. Steel with its advanced steel production technology and invest heavily in updating the U.S. company’s aging production facilities. U.S. Steel is no longer among even the top 20 producers of crude steel, but it has the potential to return to a growth path.

For Nippon Steel, the deal will allow it to increase its production capacity in the United States, where many Japanese automakers have a strong presence, and to establish a new foundation for growth.

Nippon Steel’s plan to acquire U.S. Steel has been battered by U.S. politics. Since U.S. Steel, once the world’s largest steel company, symbolizes the U.S. manufacturing industry, economic rationality has taken a back seat to politics in decisions about the company.

Nippon Steel announced its plan in December 2023, but in January this year, then U.S. President Joe Biden blocked the acquisition, citing security concerns.

It is believed the deal was blocked largely out of consideration for the steelworkers union, which was part of Biden’s support base.

Trump also opposed the acquisition plan on the presidential campaign trail. However, in April, he reversed course and ordered that the plan be reexamined, with a deadline set for May 21.

The exact framework for the acquisition is not yet clear, and it remains to be seen whether U.S. Steel will become a wholly owned subsidiary of Nippon Steel. It is hoped that the details will be worked out carefully.

(From The Yomiuri Shimbun, May 25, 2025)