In a dramatic escalation, Nippon Steel has pledged 14billioninUSinvestments∗∗—including∗∗14billioninUSinvestments∗∗—including∗∗4 billion for a new steel mill—as it seeks to overcome political resistance and secure Trump administration approval for its $14.9 billion takeover of US Steel, according to internal documents and sources.
Key Details of the Sweetened Deal:
✅ 11Bininfrastructureupgrades∗∗(2024−2028)✅∗∗11Bininfrastructureupgrades∗∗(2024−2028)✅∗∗1B initial greenfield site, expanding to $4B
✅ Headquarters to remain in Pennsylvania
✅ No job cuts promised
The move comes ahead of a May 21 deadline for a fresh national security review, after Biden blocked the deal in January, calling it a risk to American industry. Trump now has 15 days post-review to decide—but signals remain mixed.
Why the Stakes Are High:
- National Security vs. Foreign Investment: Biden cited defense supply chain risks, while Trump has wavered between supporting Japanese investment and demanding US ownership.
- Steel Tariffs & Market Access: Nippon Steel faces 25% US tariffs unless the deal closes, plus a $565M breakup fee if it collapses.
- Pennsylvania Politics: Both Biden and Trump have courted steelworkers in this swing state, where US Steel is headquartered.
What’s Next?
- Trump’s Decision: His administration pushed for higher investment but hasn’t committed to approval.
- Legal Fallout: If blocked, Nippon Steel could challenge in court, arguing the review was biased.
- Market Reaction: US Steel shares rose 3% on the news, but uncertainty lingers.
Quote Spotlight:
“Increased investment to expand US steel production is critical to national security. Trump will approve this deal.”
— Nick Klein, DLA Piper lawyer
“President Trump revived this deal and made it great.”
— Kim Ward, PA GOP Senator
Bottom Line:
Nippon Steel is pulling out all stops to salvage the merger—but with Biden opposed, Trump unpredictable, and unions skeptical, the battle for US Steel is far from over.