Summary
- Former President Trump expressed support for Nippon Steel's acquisition plan of US Steel, stating it will create at least 70,000 jobs.
- Trump's support announcement led to a surge in US Steel's stock price, with the market interpreting it as a de facto approval of the acquisition.
- Nippon Steel stated that the acquisition will have a significant impact on the US steel industry, marking an important turning point amidst opposition from the steel union.
Donald Trump, the President of the United States, has officially expressed his support for the acquisition plan of US Steel by the Japanese steel company Nippon Steel. This marks a step back from Trump's previous opposition to foreign companies acquiring steel firms.
On the 24th (local time), according to foreign media such as Reuters, President Trump stated on his social media platform Truth Social, "The planned partnership between US Steel and Nippon Steel will create at least 70,000 jobs and add $14 billion to the US economy," expressing his support for the acquisition.
Following Trump's remarks, US Steel's stock price surged by 21% during the day. The market interprets Trump's comments as a de facto approval of the acquisition. Trump also predicted in his post that "most of the investment will be executed within the next 14 months."
On the same day, Nippon Steel welcomed Trump's support, stating, "This partnership is a turning point that will change the landscape of the US steel industry and manufacturing as a whole." US Steel also stated, "We will be able to grow into a larger and stronger steel company within the United States."
Previously, the acquisition proposal was blocked by former President Biden for national security reasons. At that time, the US government judged that the entry of foreign companies into the steel industry could threaten supply chains and security. The steel union also maintained its opposition to the acquisition.
Trump, who previously argued that "US Steel must be an American company," used the term 'partnership' instead of 'acquisition' to reduce political burden.
Republican Senator Dave McCormick evaluated, "This partnership will protect more than 11,000 Pennsylvania jobs and create at least 14,000 new jobs."
Reuters added, "Trump's change of stance puts an end to more than a year of uncertainty while making a calculated decision with political acumen," and "Trump changed his position after Nippon Steel promised to expand its investment."
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
