President-elect Donald Trump reiterated his commitment Monday night to stop Nippon Steel, Japan’s largest steelmaker, from acquiring U.S. Steel in a $15 billion deal. This marks the first time Trump has addressed the issue since his reelection on November 5.
The takeover bid by Nippon Steel has sparked political and economic debate, with Trump’s stance adding fuel to the controversy. Although Trump had previously vowed to oppose the deal, reports from The New York Times suggest there was an expectation the transaction might find a path forward once political scrutiny lessened.
Hopes for a surge in mergers and acquisitions under a more relaxed regulatory Trump administration are now in question, with this high-profile deal becoming a key test case.
Trump’s Position
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump declared on Truth Social.
“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!,” he added.
National Security Concerns
The Committee on Foreign Investment in the U.S. (CFIUS) is investigating whether the proposed deal poses risks to national security, with a decision expected before President Biden leaves office on December 23. While Japan is a key U.S. ally, the acquisition of an American steel giant has drawn criticism from both sides of the political aisle.
President Biden and Vice President Kamala Harris have expressed opposition to the deal. The United Steelworkers (USW) union has joined the chorus of critics, warning against foreign ownership of the Pennsylvania-based steel company.
With the deal potentially closing before Trump’s inauguration, it could complicate efforts to reverse it should it proceed.
Nippon Steel’s Response
Nippon Steel has pushed back against criticism, with Vice Chair Takahiro Mori addressing concerns directly during a visit to Pittsburgh last month. In a letter to steelworkers, Mori pledged the company would not import steel from its other mills to the U.S., dismissing what he called “a lot of misinformation” surrounding the deal.
A spokesperson for Nippon Steel emphasized the company’s commitment to strengthening U.S. Steel.
“We are determined to protect and grow U.S. Steel in a manner that reinforces American industry, domestic supply chain resiliency, and U.S. national security,” the spokesperson said, as per a report from Axios.
The company has also promised to invest at least $2.7 billion in unionized facilities, introduce advanced technological innovations, and secure union jobs to ensure U.S. Steel can “manufacture the most advanced steel products for American customers.”
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