Having grown up in West Virginia, the merger between U.S. Steel and Nippon Steel (which has just been approved by President Trump) hits close to home. My family and community relied on the coal and railroad industries—both deeply tied to steel production.
A revitalized domestic steel industry with billions in new investment can boost demand for American coal, gas, and rail services, creating jobs and economic opportunities in a region that’s faced hard times. This isn’t just about steel; it’s about the livelihoods of countless Rust Belt and Appalachian families.
Steel has been the backbone of American industry for over a century, driving progress in everything from skyscrapers to automobiles, to tanks and ships. It’s been a major factor in America’s rise to be the world’s superpower. Yet, our steel industry has struggled in recent decades, battered by global competition and unfair trade practices.
The merger offers a bold solution—a chance to revitalize this vital sector with billions in new investment from Japan while strengthening our economy more broadly.While news reports about the $14.9 billion deal in 2023 turned a lot of heads, especially in Appalachia, many wrote it off and moved on after President Biden’s team shut it down earlier this year, citing national security concerns.
Yet those alleged concerns were not justified through a governmental CFIUS review dealing with foreign investment – the interagency committee hadin fact failed to reach a consensus by late 2024. This group of American experts declined to rubber stamp the Biden White House foregone conclusion to block the merger.
Even though some figured President Trump wouldn’t resurrect the deal since he also opposed the merger while on the 2024 campaign trail, they were proven wrong when he ordered CFIUS to take another look in April. The CFIUS panel which reported in May was split again on its recommendation to President Trump but a White House official said most panel members believe any security risks posed by the deal can be addressed. Now the door is wide open for President Trump to secure the best deal possible for Rust Belt and Appalachian families.
This deal signals a brighter future for U.S. Steel with significant fresh investment, including $4 billion for a state-of-the-art, entirely new steel mill. It is a big win for President Trump’s agenda and American workers.
One of the merger’s greatest promises is its potential to counter China’s total domination of the global steel market. China used to be an industrial backwater not long ago, however since it joined the World Trade Organization in 2001, it now produces over half the world’s steel.
The numbers in gross tonnage are staggering and not well known. According to the World Steel Association, China produced 76 metric tons of steel in December 2024, dwarfing both Japan and the U.S. which produced just under 7 metric tons each. Combining forces among key national security allies to better compete with China is plain common sense.
For industries like automotive and construction, which depend heavily on steel, this merger can be a game-changer. A stronger U.S. Steel, backed by Nippon Steel’s resources and expertise, can likely stabilize and improve steel pricing. Lower, more predictable costs will reduce expenses for these sectors, potentially lowering consumer prices and boosting competitiveness in global markets.
Beyond economics, the merger promises to breathe new life into the U.S. steel industry as a whole. Decades of decline through no fault of its own have left the sector vulnerable, harming our industrial base. By infusing our own steel industry with billions in new capital, technology, and innovation, this partnership would strengthen domestic production, ensuring a reliable supply critical for national security and economic stability.
Some have pointed out that Vice President Vance spoke of the need for Japanese investment in our manufacturing sector in his memoir, highlighting how the Japanese company Kawasaki’s investment in Armco in 1989 gave the company a fighting chance to retool and maintain jobs.
The U.S. Steel-Nippon Steel merger is more than a corporate deal—it’s a strategic move to fortify America’s economy, counter foreign threats, and honor our industrial heritage. It improves the health of a key industry, and strengthens our steel sector against global uncertainties.
