Nippon Steel is reportedly close to finalizing a deal to invest in U.S. Steel, receiving endorsement from former President Donald Trump.
Trump characterized the arrangement as a “partnership,” claiming it would create 70,000 jobs and inject $14 billion into the economy, while ensuring the company remains in the U.S.
On his social media platform, Truth Social, Trump stated, “US Steel will REMAIN in America, and keep its headquarters in the Great City of Pittsburgh.
My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA, from Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE IS BACK.”
However, the sentiment among local workers suggests widespread skepticism about the deal and its potential impact on the American steel industry.
Wally Smith, a retired contractor with a history at the Gary Works plant in Indiana, raised concerns over the implications of Nippon’s investment.
“They could cripple our steel industry if [Nippon] wants to,” he warned.
“They could lay off people here to increase their sales at their other plants.
It just wasn’t a good deal.”
Smith, 65, along with fellow retired contractor Dave Hiestand, 61, expressed doubt over Trump’s promising job creation figures.
“I haven’t met a steelworker who likes [the deal],” Hiestand stated, echoing a sentiment of uncertainty and fear among workers.
Smith also voiced apprehension about the future of retiree pensions in light of the proposed agreement.
“Are their pensions protected?
Who knows all the details about this?
It’s not a partnership.
It’s an acquisition,” he said.
Nippon Steel’s initial offer to buy the Pittsburgh-based U.S. Steel surfaced in late 2023 but was halted by then-President Joe Biden in January due to national security concerns.
During Biden’s presidency, the United Steelworkers of America voiced opposition to the acquisition.
In response to Trump’s recent statements, the union indicated it lacks sufficient information regarding the deal.
“Over the last several days, we have received calls and messages from many of our members and local union leaders who do not support the merger asking what the rumored ‘partnership’ means,” stated USW International President David McCall and Mike Millsap, who leads USW locals in Indiana, Illinois, and Wisconsin.
“Nippon has maintained consistently that it would only invest in U.S. Steel’s facilities if it owned the company outright.
We’ve seen nothing in the reporting over the past few days suggesting that Nippon has walked back from this position.”
Amidst these concerns, Trump assured reporters that U.S. Steel would remain “controlled by the United States,” interpreting the arrangement as an investment entailing partial ownership while maintaining U.S. oversight.
Certain lawmakers have also expressed support for the deal.
Gary Mayor Eddie Melton expressed his satisfaction with Trump’s announcement, suggesting that it would help secure jobs in America.
“This transformational transaction ensures steel jobs will remain in America and directly impacts thousands of families in our region,” stated Melton.
U.S. Representative Frank Mrvan, who represents Northwest Indiana and chairs the Congressional Steel Caucus, changed his stance to favor the merger but remains cautious.
“Nippon Steel must be held to every promise made — from promises to the hardworking steelworkers of Northwest Indiana and the City of Gary, to the economic and strategic interests of the United States,” Mrvan said.
“We will not hesitate to act if those commitments are broken.”
In contrast, Smith remained firmly against the deal, stating, “It’s a bad move.
The court should block it.”
As discussions continue, uncertainties loom large for workers and stakeholders in the region, reflective of a profound skepticism over the potential future of the American steel industry.
image source from：https://www.wbez.org/business/2025/05/29/us-steel-nippon-deal-trump-workers-union
