On a recent Sunday, former President Donald Trump announced a significant decision regarding the ownership of U.S. Steel while aboard Air Force One. Speaking to media representatives during his flight between Washington and Tokyo, Trump declared that Nippon Steel, a Japanese company, cannot take a majority stake in U.S. Steel, an American firm. Despite Nippon Steel's willingness to invest heavily, Trump emphasized that the plan to acquire the company in its entirety is not feasible under current conditions.
Nippon Steel's potential investment in U.S. Steel has been characterized as "very exciting" by Trump. However, his announcement signifies that the Japanese corporation must revise its acquisition strategy. While foreign investment is welcomed, it is the majority ownership of U.S. Steel that remains off-limits to foreign entities. This condition underscores Trump's stance on maintaining American ownership of the steel giant, reflecting the broader policy of economic nationalism that marked his administration.
"Nobody can have a majority stake for U.S. Steel. They can [have] for other companies, but not for U.S. Steel."
— Donald Trump
The announcement was made in the context of an agreement between Trump and Nippon Steel, which is poised to invest substantially in U.S. Steel. While this agreement opens doors for strategic partnerships and capital infusion, it firmly closes the possibility of foreign control over the company’s majority shares. The declaration comes amid ongoing discussions about foreign investments and their implications for national industries.
"I don't want U.S. Steel being owned by a foreign country…. But they are allowed to invest in it, and that's different."
— Donald Trump
The statement made clear that while Nippon Steel can pursue stakes in other companies, U.S. Steel remains a protected asset within Trump's vision for America's economic landscape. This decision requires Nippon Steel to re-evaluate its approach and potentially seek other opportunities or partnerships within the United States.