Trump leaves US Steel deal shrouded in confusion, raises tariffs
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President Trump spoke for more than an hour on Friday at a U.S. Steel facility in Pennsylvania, but never explicitly said if he's approved a deal whereby Japan's Nippon Steel would acquire U.S. Steel for $14.9 billion.
Why it matters: This prolongs a 16-month saga that included lawsuits, intra-union dissension, conflict between geopolitical allies, and literal shouting.
- Trump did, however, announce plans to increase tariffs on steel imports to 50% from 25%.
Zoom in: Trump repeatedly referred to a planned "partnership" between Nippon and U.S. Steel, without explaining what that would mean.
- Prior reporting suggests that it could mean the deal goes through, but with Nippon Steel pledging over $14 billion in new investments.
- U.S. Steel also would have an American CEO and an American majority on its board of directors, while the U.S. government would get a so-called "golden share" that would let it prevent actions deemed to be against the country's interests.
Yes, but: It isn't yet clear how the board of a U.S. subsidiary could force Nippon to invest the money, were it to change its mind after the merger closes.
- Steelworkers union officials had warned that an earlier agreement would have allowed the Japanese company out of its investment commitment without cause.
Catch up quick: Former president Biden blocked the merger on national security grounds, while Trump also opposed it during last year's campaign.
What he's saying: Trump told the crowd in Pennsylvania that there's "a lot of money coming your way," and confirmed the $14 billion figure.
- Neither U.S. Steel nor Nippon Steel have issued any public statements on Friday about the merger.
- The United Steelworkers union said in a statement that it hasn't participated in any discussions with the White House or either company, and doesn't know what the final arrangement includes.
Go deeper: Why Trump needs Pittsburgh right now
