Nippon Steel's shares experienced a surge in Tokyo following Donald Trump's endorsement of their $14.9 billion bid for U.S. Steel. Trump's support highlighted the deal's potential to generate jobs and stimulate the U.S. economy, leading to a significant jump in U.S. Steel shares as well. This acquisition is a core component of Nippon Steel's global expansion strategy, aimed at boosting production capacity amid declining domestic demand.

Trump emphasized that the "planned partnership" between Nippon Steel and U.S. Steel is expected to create at least 70,000 jobs and contribute $14 billion to the U.S. economy. He specified that the majority of this investment would materialize within the subsequent 14 months. While the exact nature of the "partnership" remains unclear—whether it signifies a full acquisition—Trump's backing has been interpreted by investors as a green light for the long-planned takeover, effectively removing the final major obstacle.

Both U.S. Steel and Nippon Steel have welcomed Trump's comments. The deal is poised to elevate Nippon Steel's production from 63 million metric tons to 86 million metric tons, a crucial increase given the current decline in domestic demand. The merger is projected to establish the world's third-largest steel producer by volume, trailing only China's Baowu Steel Group and Luxembourg-based ArcelorMittal.

Adding to the developments, Trump asserted that the United States would retain control over U.S. Steel, despite its partnership with Nippon Steel. He underscored the deal's advantages for American jobs and investment, noting Nippon Steel's plan to invest $14 billion, including the construction of a new steel mill. Trump reassured that relevant lawmakers support the agreement, ensuring continued U.S. oversight of the merged entity. He stated, "It will be controlled by the United States, otherwise I wouldn't make the deal."

Investors have expressed optimism that the terms of the deal will align with those agreed upon in 2023, anticipating that U.S. Steel will eventually cease to be publicly traded, with shareholders receiving cash payouts for their shares. The deal became a focal point of political debate amid concerns that foreign ownership could lead to job losses in Pennsylvania, where U.S. Steel is headquartered.