American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Can the US Steel-Nippon deal really deliver 70,000 jobs as Trump claims?

by admin May 27, 2025
May 27, 2025
Can the US Steel-Nippon deal really deliver 70,000 jobs as Trump claims?

United States Steel Corp (NYSE: X) has rallied more than 20% in recent sessions on the back of Trump’s approval for its long overdue deal with the Tokyo based Nippon Steel (TYO: 5401).

According to the US President, the said transaction, details of which have eluded the media so far, will see the Japanese steelmaker invest some $14 billion in the US that he believes will help create as many as 70,000 jobs in the country.

However, experts remain wary of that number as the math just doesn’t seem to add up here.

US Steel doesn’t employ half as many employees currently

There are several reasons why Trump’s claim that the US Steel – Nippon agreement will create about 70,000 jobs will prove a miscalculation over time.

For starters, the NYSE listed firm currently has a total of about 20,000 employees only – and that’s including the non US based positions.

Adding 70,000 jobs, as the President claims this deal will over time, would mean a more than five times increase in the company’s current domestic workforce.

This scale of expansion is quite unprecedented and will require a massive increase in the overall production capacity. Note that the steel stock is now up more than 60% year-to-date.

Labour unions are not happy with the US Steel – Nippon deal

Investors are recommended to take the President’s claim of 70,000 new jobs with a pinch of salt as he hasn’t yet offered more colour on how these jobs would be created, whether they’d be direct hires at US Steel or indirect jobs in related industries.

Without a clear breakdown, the number appears speculative only, especially since it’s not backed by Nippon or even the unions.

In fact, the United Steelworkers union has expressed doubts about the deal, noting that the Japan’s behemoth did not consult it before announcing that transaction.

If labour unions are not fully on board, it could lead to resistance or delays in job creation, making it incrementally more challenging for the merged company to hit that 70,000 number.  

Global steelmakers have been turning to automation

Investors should also note that modern steel production relies heavily on automation, reducing the need for large-scale hiring.

So, Nippon may invest $14 billion, part of which will reportedly go to setting up a new steel mill in the US – but even the new facilities may not require as many workers as the White House has recently claimed.

Finally, the regulatory hurdles could limit the scope of US Steel – Nippon transaction in terms of creating new jobs in the United States.

Given these variables, President Trump’s claim of 70,000 new jobs seems highly optimist and very difficult to achieve under current industry conditions.

That may be part of the reason why Nippon stock is slipping following his announcement.

The post Can the US Steel-Nippon deal really deliver 70,000 jobs as Trump claims? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Top 2 US stocks to buy for exposure to Bitcoin’s ongoing rally
next post
USD/ZAR: South African rand outlook before SARB decision

Related Posts

Trump Media jumps more than 9% after CEO...

April 26, 2024

Dow tumbles more than 600 points after weak...

August 6, 2024

AT&T stock price is soaring: is it a...

April 4, 2025

Ubisoft shares surge as Tencent invests in new...

March 28, 2025

CAC 40 analysis as EUR/USD eyes parity, France...

January 14, 2025

Hyundai and Kia unit settles U.S. charges it...

May 11, 2024

Bernard Arnault surpasses Mark Zuckerberg as world’s 3rd...

October 1, 2024

Credit card delinquency rates hit a nearly 12-year...

July 25, 2024

Ubisoft could go under Chinese or Saudi ownership...

January 17, 2025

US investigates DeepSeek over possible use of banned...

January 31, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025
    • Inflation outlook in 2025: what April’s soft data isn’t telling you

      May 18, 2025
    • Rich List 2025: UK billionaires decline for first time in years amid market turmoil

      May 18, 2025
    • Novo Nordisk CEO to step down as obesity drug competition intensifies

      May 18, 2025
    • Argentina’s black market for dollar falters as President Milei dismantles currency controls

      May 18, 2025

    Categories

    • Business (2,949)
    • Investing (2,426)
    • Latest News (1,990)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved