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Trump to hold rally at U.S. Steel plant in political swing

state

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President has until next week to make final decision on

merger

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Tie-up with Japanese company has faced headwinds

By Alexandra Alper and Jeff Mason

WASHINGTON, May 30 (Reuters) - U.S. President Donald

Trump heads to Pittsburgh, Pennsylvania on Friday to headline a

rally to celebrate Nippon Steel's ( NISTF ) "planned partnership" with

U.S. Steel, signaling final approval for the deal could be

on the horizon.

Proponents of the transaction are hoping his visit to the

state where U.S. Steel is headquartered will cap a tumultuous

18-month effort by Nippon Steel ( NISTF ) to buy the iconic

American company, beset by union opposition and two national

security reviews.

But the deal is possibly not entirely done. Following

Trump's post on Truth Social last Friday announcing the rally

and appearing to endorse the merger, he sowed doubt on Sunday,

describing the deal to reporters as an investment with "partial

ownership," with control residing with the U.S.

Trump will deliver remarks at a U.S. Steel plant at 5 p.m.

ET (2100 GMT) on Friday in the political swing state, which he

won in the 2024 election. The White House described his remarks

as being about the "U.S. Steel Deal."

Trump technically has until next Thursday to decide whether

to approve or scuttle the deal, after the Committee on Foreign

Investment in the U.S. last week completed a second review of

the merger. But the timeline could slip.

The road to Friday's rally has been a bumpy one.

Nippon Steel ( NISTF ) offered $14.9 billion for U.S. Steel in

December 2023, seeking to capitalize on an expected ramp up in

steel purchases, thanks to the bipartisan infrastructure law.

But the tie-up faced headwinds from the start, with both

then-President Joe Biden and Trump asserting U.S. Steel should

remain American-owned as they sought to woo voters in

Pennsylvania ahead of the November presidential elections.

Former Vice President Kamala Harris, who became the Democratic

nominee in 2024 after Biden stepped aside, also said U.S. Steel

should remain domestically owned.

Following a previous CFIUS-led review, Biden blocked the

deal in January on national security grounds.

The companies sued, arguing they did not receive a fair

review process, a charge the Biden White House disputed.

The steel giants saw a new opportunity in the Trump

administration, which opened a fresh 45-day national security

review into the proposed merger last month.

But Trump's public comments, ranging from welcoming a simple

"investment" in U.S. Steel by the Japanese firm to suggesting a

minority stake for Nippon Steel ( NISTF ), did little to shore up investor

confidence in an eventual green light.

Reuters reported last week that Nippon Steel ( NISTF ) had floated

plans to invest $14 billion in U.S. Steel's operations including

up to $4 billion in a new steel mill if the Trump administration

green lights its merger bid, in response to requests from the

government for more investment.

"This will be a planned partnership between United States

Steel ( X ) and Nippon Steel ( NISTF ), which will create at least 70,000 jobs,

and add $14 Billion Dollars to the U.S. Economy," Trump posted

last Friday, breathing new hope into prospects for the tie-up.

"I will see you all at US Steel, in Pittsburgh, on Friday, May

30th, for a BIG Rally. CONGRATULATIONS TO ALL!"