President Donald Trump announced on Friday the approval of a merger between U.S. Steel and Nippon Steel, reversing a previous block by President Joe Biden due to national security concerns. This new partnership is expected to generate at least 70,000 jobs and contribute $14 billion to the U.S. economy. Trump emphasized that U.S. Steel’s headquarters will remain in Pittsburgh, and the majority of the investment is planned over the next 14 months. Following the announcement, U.S. Steel’s shares surged more than 20%, closing at $52.01.
In January, Biden had halted Nippon Steel’s attempt to acquire U.S. Steel for approximately $14.9 billion, citing risks to supply chains vital to U.S. national security. However, Trump initiated a reevaluation of the acquisition in April, instructing the Committee on Foreign Investment in the United States to consider the merger’s implications.
In conjunction with the announcement, Trump revealed plans for a rally at U.S. Steel in Pittsburgh on May 30, highlighting his administration’s emphasis on job creation and economic revitalization through this merger. The contrasting responses from the two administrations illustrate differing approaches to foreign investments in critical industries and their perceived impacts on national security and the economy.
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