Trump’s backing for Nippon’s U.S. Steel bid leaves key questions unanswered

An employee enters Nippon Steel's plant in Kashima, Japan on Dec. 6, 2024. (Ayaka McGill / AP Photo)

U.S. President Donald Trump’s comments supporting Nippon Steel’s $14.9 billion bid for U.S. Steel has left lingering questions about the scope of the deal and its costs for the Japanese firm, leading to muted gains for its shares on Monday.

As part of the deal announced on Friday, Trump said in a post on Truth Social that the “planned partnership” between the two companies will create at least 70,000 jobs and add $14 billion to the U.S. economy, and then said on Sunday that the United States will have control over U.S. Steel as part of the partnership.

It is still unclear whether “partnership” refers to the full acquisition of U.S. Steel that Nippon Steel has been pursuing. The White House did not respond to questions about the announcement on Friday.

Speaking at a media briefing on Monday, Japan’s Chief Cabinet Secretary Yoshimasa Hayashi said the government will make efforts to facilitate communication among the relevant parties regarding Nippon Steel’s bid.

Shares of Nippon, the world’s fourth-largest steelmaker, rose as much as 7.4 per cent to 3,081 yen ($21.55) in Tokyo, but then erased a chunk of the gains to be up 1.7 per cent by mid-afternoon trade.

A merger would create the world’s third-largest steel producer by volume, after China’s Baowu Steel Group and Luxembourg-based ArcelorMittal, according to World Steel Association data.

by Jeff Mason and Steve Holland