In a bold move aimed at supporting American industries, President Donald Trump announced plans to double tariffs on steel imports from 25% to 50%.
During remarks at U.S. Steel’s Irvin Works in West Mifflin, Pennsylvania, Trump underscored his administration’s commitment to protecting domestic steelworkers and the industry.
This announcement comes as Trump visits U.S. Steel after previously signaling that he would reconsider a controversial merger with Japan’s Nippon.
Investors, union members, and industry watchers are looking to Trump for clarity on the intricacies of the alliance he referred to as a “partnership” in a post on his social media platform, Truth Social, dated May 23.
According to Trump, the merger will see Nippon investing $14 billion over 14 months into U.S. Steel, which has a long-standing history of over 120 years, while maintaining its headquarters in Pittsburgh.
During a press conference on Sunday, Trump reassured reporters that the deal represents an investment in a position of partial ownership but insisted it would remain under U.S. control.
Despite the president’s optimistic outlook, the White House and involved companies have yet to reveal comprehensive details regarding the structure of the merger.
A recent filing with the Securities and Exchange Commission indicated that U.S. Steel describes the transaction as a “merger” but notes that it will operate as a wholly owned subsidiary of Nippon Steel North America.
Sources have informed CNBC that Nippon Steel is anticipated to finalize its acquisition at $55 per share, which aligns with the original offer rejected by the Biden administration back in January on national security grounds.
Biden’s administration raised concerns that Nippon’s ownership could jeopardize vital supply chains across the country, prompting an initial halt to the deal.
In an unexpected turn, Trump ordered a fresh review of the acquisition in April, indicating a shift in stance that aligned more closely with Nippon’s interests.
This revitalized consideration of the merger came just after the Committee on Foreign Investment in the United States (CFIUS) was set to conclude their review and assess whether the companies had successfully addressed any national security risks.
Senator Dave McCormick from Pennsylvania has elaborated on the emerging deal, stating that the U.S. government will hold a “golden share” that allows oversight of certain board appointments.
McCormick confidently asserted that U.S. Steel would have an American CEO, and the majority of board members would be drawn from within the United States.
“It’s a national security agreement that will be signed with the U.S. government,” McCormick emphasized during an appearance on CNBC’s “Squawk Box.”
The proposed golden share mechanism likely won’t translate to an equity stake for the U.S. government, according to James Brower, a partner at Morrison Forrester’s litigation department, who specializes in CFIUS-related issues.
Instead, this arrangement might provide the U.S. government with contractual rights to veto specific actions, a critical safeguard for national interests.
While Nippon Steel will have members on the board as part of its corporate structure, White House Trade Advisor Peter Navarro affirmed that control of U.S. Steel remains with American stakeholders.
“U.S. Steel owns the company,” Navarro categorically stated, attempting to assuage concerns over foreign influence.
On Friday, U.S. Trade Representative Jamieson Greer indicated that while specifics surrounding the Nippon Steel deal remain largely confidential, the overarching principle guiding the negotiation is American oversight of key sectors.
Greer stressed that regardless of foreign investments in U.S. companies, maintaining control over essential industries—be it basic manufacturing or advanced technology—remains paramount for national interests.
The United Steelworkers union, which initially opposed the merger, expressed hesitance to comment on the implications of Trump’s latest announcement, citing a lack of detailed information.
As discussions continue, all eyes will remain trained on developments concerning a deal that holds significant implications for the U.S. steel industry and its workforce.
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