Nippon: Bolstering Our Economy or Steeling Our Business?

June 2nd, 2025

Sadie Zwonitzer

Donald Trump’s term as president has been riddled with controversial economic policies, which have caused a stir in foreign and domestic politics. Trump, however, might have just closed an economically beneficial plan for the US. Just a few days ago, Japanese steel company Nippon closed its acquisition of US Steel for $55 per share. This deal has the potential for widespread costs and benefits to the American people, and this isn’t the first time it's been considered.

Earlier this year, former President Joe Biden rejected a 14 billion dollar bid by Nippon to purchase the steel company. This sparked mixed reactions, including online anger by the Republican party, who believed this deal could bolster American jobs and innovation. Now, Donald Trump has completed the deal. However, the President, despite selling the company, claims that “US Steel will still be controlled by America.” This comes as Trump continues to implement an America-first policy that controls international economies. Trump announced on Saturday that he would increase tariffs on aluminum and steel into the U.S by 50%. This raises concerns considering the sales of US Steel, and could potentially cost the American people thousands, despite its original goal of protecting jobs within the American steel sector. This deal also may come as a shock to both Japan and the United States, as just recently Japan, China, and South Korea hosted a trilateral summit, in which they discussed avoiding the United States’ tariff policies. This new deal could potentially bring about hope for trade between the two nations in the future.

Unlike President Biden, Trump’s window to block the acquisition has closed, meaning that Nippon will successfully purchase US Steel. Trump continues to claim control over the company despite the foreign purchase, but with tariffs and potential economic turmoil on the rise for Americans, it's becoming more and more uncertain as to whether or not this deal will actually bring about the economic benefits that the President claims it will.

Extemp Analysis by Rowan Seipp

Extemp Question: How will Nippon’s acquisition of US Steel alter the American steel sector?

AGD: Take a pick of sad stories from the rust belt and the decline of US Steel. Plenty to choose from.

BG: Link the AGD into a statistic about the declining rust belt.

SOS: Another cite about joblessness

Thesis: Yes, because it will allow for more job security.

Use this overarching idea to argue the problems with US Steel and contrast that with what Nippon Steel provides for the American economy. Take your pick of economic facts and repeat for each of 3 points. Happy extemping!