HARRISBURG, Pa. (AP) — President Donald Trump is set to hold a rally in Pennsylvania on Friday to commemorate a new agreement for Japan-based Nippon Steel to invest in U.S. steel operations. An emblematic American steel maker now under U.S. management.
Initially, Trump pledged to block offers from Japanese steel firms looking to acquire Pittsburgh-based U.S. Steel, but he has since reversed his stance, We announced the contract last week citing “partial ownership” by Japan. However, it remains unclear whether the deal his administration facilitated has been finalized or how ownership will be organized.
Trump emphasized that this agreement will maintain American oversight of a prestigious company, which serves as both a political symbol and a vital matter for the nation’s supply chain, particularly for industries such as automobile manufacturing and national security.
Hoping to promote U.S. investments and address constituents’ concerns since losing the White House, Trump aims to appeal to voters, especially blue-collar workers who supported him due to his commitment to safeguarding U.S. manufacturing.
U.S. Steel has not openly disclosed details regarding the enhanced agreement to investors. Nippon Steel has released a statement endorsing the planned “partnership” but has yet to clarify the specifics of the arrangement.
State and federal lawmakers briefed on the topic describe the deal as involving Japan’s substantial investment into U.S. steel facilities located in Pennsylvania, Indiana, Alabama, Arkansas, and Minnesota. The company will be governed by an executive team and board of directors primarily composed of Americans, and will be safeguarded by a U.S. government veto through a “golden share.”
Amid the absence of clear terms or confirmations from the companies engaged, the United Steelworkers Union, which has long criticized the deal, questioned whether this new agreement would bring about any “meaningful change” from the initial proposal.
“Nippon has consistently stated that it would invest in U.S. steel facilities only if it had complete ownership,” the union noted in a statement. “Recent reports indicate that Japan may have shifted from this position.”
The White House did not provide any new details on Thursday. U.S. Steel did not respond to requests for information, and Nippon Steel also declined to comment.
This matter is crucial for Trump. He has repeatedly stated, much like former President Joe Biden, that he would obstruct any foreign ownership of U.S. steel.
During his campaign, Trump promised to prioritize the revitalization of American manufacturing if re-elected. The outcome of U.S. Steel, once the world’s largest company, could hold substantial political weight for Republicans in battleground states like Pennsylvania that rely heavily on industrial manufacturing.
Trump stated on Sunday that he would not endorse the deal unless U.S. Steel remained under American control and retained its headquarters in Pittsburgh.
In a Wednesday interview with Fox News, Pennsylvania Republican Rep. Dan Meuser termed it as “Strictly An Investment, American-operated, a strategic partnership remaining in America.”
However, Meuser indicated he had not reviewed the deal yet, noting it was “still in development.”
Pennsylvania Republican Sen. David McCormick expressed his support for the initiative, labeling it “excellent” for domestic steel workers and national security, and leading a bipartisan group of senators in opposing the initial $14.9 billion acquisition proposal announced in late 2023.
Recently, Trump and other U.S. officials have begun to highlight Nippon Steel’s renewed commitment, which includes $14.9 billion in investments and culminates in plans for constructing a new electric arc furnace steel factory in the U.S.
Democrat John Fetterman, another Pennsylvania senator who resides near the U.S. Edgar Thomson Steelworks, has not openly endorsed the new proposal but mentioned that he supported Nippon Steel’s earlier bids until “Japan offered an additional $14 billion.”
The proposed “golden share” includes three board members sanctioned by the U.S. government, ensuring that U.S. Steel can only make decisions aligned with American interests, McCormick explained on Tuesday during a Fox News segment.
Gov. Josh Shapiro, a Democrat considered a potential presidential contender, has largely refrained from endorsing the contract but shared that he is “cautiously optimistic” about the deal at a press conference this week.
In a Thursday interview with the conservative Washington Examiner, Shapiro remarked:
Chris Kelly, the mayor of West Mifflin, Pennsylvania, acknowledged the uncertainty regarding some details of the deal but expressed optimism, stating it would “save thousands of jobs for his community.”
“It’s like a reprieve from steel removal in Pittsburgh,” he said.
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Reporting by Price from Washington. Tokyo AP’s Yuri Kageyama contributed to this report.
Source: apnews.com