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Steelworkers Divided as Trump Vows to Block US Steel Sale to Japanese Firm

Steelworkers Divided as Trump Vows to Block US Steel Sale to Japanese Firm
The United States Steel logo (Gene J. Puskar / Associated Press)
  • PublishedDecember 5, 2024

Steelworkers in Pennsylvania are expressing mixed emotions after President-elect Donald Trump announced plans to block the $14.9 billion sale of US Steel to Japan’s Nippon Steel, Newsweek reports.

Trump reiterated his campaign promise on Monday via Truth Social, pledging to prevent the deal.

“I am totally against the once great and powerful US Steel being bought by a foreign company,” Trump wrote.

He emphasized plans for tax incentives and tariffs to revitalize the American steel industry.

In the Pittsburgh area, where US Steel employs approximately 3,500 people, reactions to Trump’s statement were swift and divided. Jason Zugai, vice president of United Steelworkers Local 2227 in West Mifflin, described the announcement as a “gut punch.” He expressed frustration, noting the sale’s potential benefits and surprise at Trump’s firm opposition.

Supporters of the sale highlight Nippon Steel’s pledge to invest at least $2.7 billion into US Steel’s unionized facilities, introduce advanced technology, and secure union jobs. West Mifflin Mayor Chris Kelly described Nippon as “the real deal,” emphasizing that the investment could create 5,000 additional jobs over the next several years, boosting local employment and the broader economy. “It’s a no-brainer,” Kelly said.

However, some labor leaders remain skeptical. United Steelworkers President David McCall voiced concerns that Nippon’s promises may not translate into long-term job security.

“I don’t trust them,” McCall told local media.

He criticized Nippon’s public relations efforts and stressed the importance of preserving steelmaking in the Mon Valley, a vital economic engine for the region.

The debate has also drawn national attention. Senator Marco Rubio, a longtime critic of the deal, argued in a recent opinion piece that the sale poses risks to national security. He echoed Trump’s concerns, warning of potential threats to American industrial sovereignty.

Written By
Joe Yans