President Trump lately declared his public assist for a deal between American firm US Metal and Japanese firm Nippon Metal. 

First proposed again in late 2023, the potential merger between the 2 firms has been the supply of nice controversy, with former President Joe Biden even blocking the deal on nationwide safety grounds and lots of, together with Trump himself, recoiling on the concept of such an iconic American firm as US Metal falling into overseas arms.

Nevertheless, as I wrote on this column in July of final 12 months, regardless of the comprehensible considerations introduced, if finished appropriately and below sure circumstances, this deal might probably not solely save US Metal but additionally serve to catalyze America’s industrial renewal whereas offering a template for future overseas funding. 

In registering his approval for the deal, President Trump has come to view it equally and, if something, has vastly improved its phrases for America.

Initially proposed as an outright takeover of US Metal by Nippon, President Trump is now presenting it as a partnership between the 2 firms and, in some ways, between their respective nations. 

Though the specifics have but to be totally disclosed and are nonetheless being finalized on the time of this writing, Nippon reportedly plans to make investments $14 billion in US Metal’s operations, together with $4 billion in a brand new metal mill. The mixed entity may have an American CEO and a US-majority board.

Based on President Trump, this partnership is predicted to create 70,000 jobs.

To make sure Nippon’s guarantees are stored, the US authorities could reportedly maintain a “golden share” within the mixed entity, offering america with a measure of management over it, together with who’s appointed to the corporate’s board and even potential veto authority over administration choices that aren’t in america’ pursuits.

Trump has acknowledged, and rightfully so, that with out America having this degree of management, he wouldn’t transfer ahead with the deal. 

Whereas some free-market absolutists could bemoan this reality, it represents the perfect of each worlds—needed overseas funding in strategically essential US industries whereas retaining America’s potential to guard its important financial and nationwide safety pursuits. All whereas guaranteeing US staff are benefited. 

The deal may also permit US Metal, and by extension American trade as a complete, to entry and additional develop next-generation know-how from Nippon, which, as famous by US Senator David McCormick from Pennsylvania, the place US Metal is headquartered, is a world chief. 

Furthermore, the choice is that US Metal continues to languish, like America’s once-storied metal trade usually, or is dismantled for elements by non-public fairness, leading to 1000’s of American staff being laid off. 

This presents an unacceptable and probably even harmful final result, because the metal trade is essential to America’s industrial base and, finally, to its nationwide protection.  

Moreover, the deal successfully kills two birds with one stone, representing each an enormous win for US industrial reshoring and revitalization whereas on the identical time deepening ties with one in every of America’s best allies, Japan.

On this respect, the deal could sign an additional strengthening of the US-Japan strategic partnership in different areas, equivalent to commerce, infrastructure, power, and protection, and even set the stage for better financial and nationwide safety coordination between the 2 nations.

Conversely, killing the deal might probably end result within the reverse. 

Certainly, the deal has not solely important home but additionally geopolitical implications, particularly because it pertains to China—America and Japan’s mutual adversary. 

On this regard, the deal could strengthen Japan’s urge for food for added and extra strong investments in US nationwide and financial safety priorities, in addition to additional alignment on mutual strategic imperatives, equivalent to denying China entry to superior applied sciences. 

Finally, the deal could function a mannequin for future overseas funding and partnerships with different allies in America’s strategic sectors and industries.

As I wrote beforehand, financial nationalism doesn’t imply rejecting overseas funding; as an alternative, entry to America’s huge market and its important sectors should be negotiated on phrases advantageous to america and in ways in which advance the nation’s important pursuits. 

President Trump not solely seems to know this reality totally, however with the Nippon-US Metal partnership, he’s actively placing it into apply.

Ultimately, the purpose is to rebuild and strengthen America and to take action on its phrases with helpful help from US allies, for whom America, all through the many years, has given a lot. 

The Nippon-US Metal partnership helps obtain this purpose and represents a win-win for America, and it ought to, due to this fact, be celebrated.

Lee Steinhauer is a strategic coverage and political advisor identified for his guide “The Artwork of The New Chilly Battle: America vs China. What America Should Do to Win.” Lee is a frequent visitor on Fox, Fox Enterprise, and Newsmax and a broadcast coverage and opinion author for quite a few media publications.