Introduction
This article regarding President Trump’s approval of a merger between U.S. Steel and Japan’s Nippon Steel has raised concerns among readers—particularly about potential national security risks, economic impacts, and the reversal of a prior presidential decision. We fact-checked the article to verify economic claims, job projections, and national security implications, while also addressing the user’s critical question: Could allowing a foreign company to control U.S. steel manufacturing create vulnerabilities?
Historical Context
U.S. Steel is a legacy American company instrumental to the country’s industrial development since the early 1900s. Known as part of the “Arsenal of Democracy” during World War II, its strategic relevance spans military manufacturing to infrastructure. In late 2023, Nippon Steel initiated a $14.9 billion bid to acquire U.S. Steel. President Biden rejected the deal in January 2024 on national security grounds. President Trump’s reversal of that decision in May 2025—just 16 months later—has fueled debate over America’s industrial sovereignty during global tensions, especially with rising concerns over critical supply chains.
Claim #1: “The partnership will create at least 70,000 jobs.”
There is no verifiable source supporting the prediction of 70,000 new jobs resulting from the merger. Historical mergers in the steel industry tend to result in consolidation of roles, including layoffs, as companies merge overlapping operations. Nippon Steel’s own 2023 statements—before Biden’s initial block—did not promise job creation of this scale. For context, U.S. Steel currently employs around 15,000 workers in the U.S., according to SEC filings and company reports. Creating 70,000 new roles would mean nearly a 5x workforce expansion, which lacks basis in either corporate plans or industry trends. This projection appears to be inflated and misleading.
Source: U.S. Steel SEC Filing, 2023
Claim #2: “The merger will add $14 billion to the U.S. economy.”
No independent economic analysis confirms that the newly approved merger will inject $14 billion into the U.S. economy. This figure goes unsubstantiated in the article and appears to come directly from President Trump’s Truth Social post, rather than an economic forecast by entities like the Congressional Budget Office (CBO), the Bureau of Economic Analysis (BEA), or private analysts like Moody’s. Additionally, Nippon’s original acquisition offer was $14.9 billion—this suggests the “injection” claimed may be confused with the acquisition cost itself, which is not synonymous with direct GDP growth.
Source: Reuters, December 2023
Claim #3: “U.S. Steel’s headquarters will remain in Pittsburgh.”
This claim is currently accurate but warrants monitoring. Nippon Steel has publicly committed to maintaining U.S. Steel’s headquarters in Pittsburgh. However, foreign acquisitions often face future restructuring, especially under economic pressure. For example, previous foreign takeovers such as China’s acquisition of Smithfield Foods initially preserved American offices, but later centralized operations abroad. The article omits the fact that corporate headquarters location does not guarantee domestic control of decision-making or asset retention. Therefore, while not false, this claim lacks long-term security.
Source: Nippon Steel Public Statement, March 2024
Claim #4: “Trump’s reversal overrode Biden’s national security block.”
This is factually correct. In January 2024, President Biden followed recommendations from the Committee on Foreign Investment in the United States (CFIUS) to block the Nippon–U.S. Steel merger. Biden cited national security risks due to reliance on foreign-controlled raw materials and vulnerability in defense supply chains. President Trump reopened the case in April 2025 and ordered a new CFIUS review. There is no current public evidence that the national security concerns were resolved before approval. The article fails to disclose whether CFIUS formally reversed their initial risk assessment, a crucial piece of context the article omits.
Source: U.S. Department of Treasury
Conclusion
The article from CNBC mostly relays statements made by former President Trump without sufficient scrutiny or independent verification. Key economic and employment claims—such as a $14 billion economic boost and 70,000 new jobs—lack factual basis and appear overstated. While the merger approval itself is factual, the article downplays or omits significant concerns raised by the Biden administration and national security experts earlier in 2024. Additionally, certain statements about job growth and headquarters retention are presented without the necessary context for readers to fully understand long-term implications. This results in a portrayal that leans positive without addressing critical risks—a bias by omission.
Encourage Readers to Take Action
Stay informed and don’t let misleading headlines shape your understanding. Download the DBUNK app today or follow us on our social platforms to submit your own fact-check requests—always free, always accurate.
Link to Original Article
https://www.cnbc.com/2025/05/23/trump-greenlights-nippon-merger-with-us-steel.html
