The future of American manufacturing now faces renewed debate after President Donald Trump backed a major steel merger. On Friday, Trump expressed support for a deal between U.S. Steel and Japan’s Nippon Steel. This marked a sharp reversal from his earlier opposition.
During his campaign, Trump vowed to block the $15 billion acquisition. Yet, his latest statement suggested a “planned partnership” would keep U.S. Steel in Pittsburgh. Following the announcement, U.S. Steel shares surged over 20%. Executives from both companies praised Trump’s message.
Still, the sudden policy shift raised concerns among union leaders. United Steelworkers President David McCall urged Trump to protect union jobs and U.S. industry. He warned that the deal could threaten the future of American manufacturing. He criticized Nippon for past trade violations and warned of risks to national security.
Meanwhile, former Senator Sherrod Brown called Trump’s move “a betrayal of American workers.” He emphasized that such foreign takeovers harm vital U.S. industries. The Committee on Foreign Investment recently completed a review of the deal. Though split, most members saw security risks as manageable.
Trump’s order in April prompted the review. The panel submitted its findings last Wednesday. However, labor leaders remained skeptical. They warned that allowing Nippon to buy U.S. Steel could weaken the nation’s industrial base. McCall described the deal as a “corporate sellout” of U.S. Steelworkers.
He stressed that Nippon had a long record of dumping steel into American markets. This practice, he argued, eroded jobs and domestic production. Despite Nippon’s promises, McCall said the company’s goals seemed focused on undermining the U.S. industry.
As Trump continues to tout the partnership, many wonder about the future of American manufacturing. His reversal could have lasting effects on both policy and perception. The final outcome of the deal remains unclear. However, public pressure on Trump continues to mount as critics demand stronger safeguards.
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