Trump’s Strategic Pivot on U.S. Steel Deal: A Smart Reversal with Big Economic Upside

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Trump’s shift in stance on the Nippon Steel–U.S. Steel acquisition marks a savvy political and economic move. After once opposing the $14 billion deal over nationalist rhetoric, Trump now praises the partnership’s potential to boost jobs and investment. With 70,000 new jobs promised, factory closures averted, and major capital flowing into American infrastructure, the move undercuts past protectionist arguments and exposes how political posturing once risked real economic harm. A clear win for pragmatism over populist noise. www.watchdogonwallstreet.com

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.

Speaker 2 (00:16):
Trump makes a very very smart pivot on steal. Yeah.
You remember that is during the campaign campaign when Trump
and Biden we're both trying to outdo each other with
MERCA and gotta keep everything here and can't. Can't let
Japan take over to steel companies is a national security concern,

(00:38):
and if you recall, we made fun of their absolutely
moronic argument, which played to a very low IQ crowd.
It is what it is. Yeah, yeah, I know, Japan
coming in and investing in an American steel company and
keeping factories open is somehow a national security concern, right, No,

(01:01):
but again it plays well with voters. Basically, it looks
like they're going to acquire US Steel for fifty five
dollars a share. The headquarters for US Steel is going
to remain in Pittsburgh, and nip On Steel is pledging
to invest fourteen billion dollars over the next fourteen months

(01:23):
to support the partnership. Trump put out. He said for
many years that AMUS steel was synonymous with greatness, and
now it will be again. This will be a planned
partnership between United States Steel and Nippon Steel, which will
create at least seventy thousand jobs and add fourteen billion
to the economy. Again, let's go back in time. Biden

(01:48):
was basically cow towing to the United steel Workers Union
at the time, David McCall and also the CEO of
Cleveland Cliffs. He nixed the deal. It was a fifteen
billion dollar acquisition, and it was all because our national
security concerns. Right, cleven Cliffs was actually outbid by Nippon

(02:15):
and they wanted to block the deal. Why did they
want to block the deal? We explained it here on
the podcast. They wanted a cartel because that's what they
would have gotten. They would have would have been a
domestic steel making cartel, which would have driven prices up.
Not good. Cleveland Cliffs doesn't have the money to upgrade

(02:36):
US steals factories. It's actually been closing factories and laying
off workers. It lost about five hundred million dollars in
the first quarter. US Steel had already put out that
they would have to close they're Indiana and Pennsylvania factories.
If the deal nip On Steel deal failed. Now again

(02:57):
during the campaign, Trump's like, no, oh, I'm not approving
this deal. Go back, and you know, look at the
receipts and whatnot. They were. You know, who's going to
be the protectionist in chief? Who was going to be
the bigger protectionist in chief at the time. Again he
has pivoted on this again, smart pivot way to reconsider. Okay,

(03:19):
and again nip On his pledge to honor its collective
bargain agreement with the union and not reduce production capacity
for ten years at US steel mills without government approvals.
Also committed to a point US citizens to top management
jobs and to a majority of board seats plus a
full time board observer to ensure compliance with its promises. Again,

(03:42):
smart move, smart food. Anybody out there that like is
afraid of foreign dollars coming into this country?

Speaker 1 (03:50):
Are you?

Speaker 2 (03:50):
Okay? Seriously, why wouldn't you want Why wouldn't you want
foreign companies to invent just here in the United States?
It don't make any sense, Okay, It's not a national
security concern, not any problem. Okay, It's all good. Great

(04:11):
move by Trump on this. One watchdog on Wall street
dot Com