Steelworkers in Pennsylvania are upset after President-elect Donald Trump announced he would block the $14.9 billion sale of U.S. Steel to a Japanese company, Nippon Steel.
Trump made this promise on his social media platform, Truth Social, saying he was against the deal and would use tax incentives and tariffs to make U.S. Steel stronger. He also warned potential buyers that the deal would not go through under his leadership.
In the Pittsburgh area, where U.S. Steel employs around 3,500 people, many workers were hopeful about the sale. Jason Zugai, the vice president of the United Steelworkers Local 2227 branch near Pittsburgh, expressed frustration, calling Trump’s announcement a “gut punch” because it was unexpected.
Supporters of the sale point out that Nippon Steel has promised to invest $2.7 billion into U.S. Steel’s unionized facilities, bring in advanced technology, and secure union jobs to produce high-quality steel for American customers.
However, not all steelworkers are in favor of the deal. David McCall, the president of the United Steelworkers, opposed it, saying it could harm the local economy. He doesn’t trust Nippon Steel to protect long-term jobs in the area.
McCall also expressed concern about the company’s large public relations efforts instead of addressing the needs of workers. He stressed that U.S. Steel is vital to the economy in the Pittsburgh area, providing many good-paying jobs.