Trump vows to "block" Japanese firm's takeover of U.S. Steel
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President-elect Trump in Washington, D.C., last month. Photo: Allison Robbert/Pool/AFP via Getty Images
President-elect Trump on Monday night reaffirmed his pledge to stop Nippon Steel's planned $15 billion purchase of U.S. Steel.
Why it matters: It's the first time he's commented on the proposed takeover by Japan's largest steelmaker since being reelected president on Nov. 5.
- Although Trump had previously pledged to block the deal, the New York Times notes that it was expected "there could be a way forward for the deal after the political pressure subsided."
- Some had hoped mergers and acquisitions would surge under a light-touch regulatory Trump administration.
What he's saying: "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 wrote on his Truth Social platform.
- "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!!!"
What we're watching: The Committee on Foreign Investment in the U.S. (CFIUS) has been investigating the proposed deal's impact on national security, though Japan is a key U.S. ally.
- The investigation is expected to be completed before President Biden leaves office — by Dec. 23, per the NYT.
- Both Biden and Democratic presidential candidate Vice President Harris signaled their opposition to the purchase of U.S. Steel, which is based in the 2024 election swing state of Pennsylvania. The United Steelworkers (USW) union also opposes the deal.
- With the deal expected to close before Inauguration Day, it could complicate Trump's efforts to roll it back if it were to proceed.
The other side: Nippon Steel vice chair Takahiro Mori pledged in a letter to steelworkers during a visit to Pittsburgh last month that the company would not import steel to the U.S. from its other mills and said "a lot of misinformation" had been circulating about the proposal from the fourth largest global steelmaker.
- A spokesperson for Nippon Steel said in an emailed statement that the company is "determined to protect and grow U. S. Steel in a manner that reinforces American industry, domestic supply chain resiliency" and U.S. national security.
- "We will invest no less than $2.7 billion into its unionized facilities, introduce our world-class technological innovation, and secure union jobs so that American steelworkers at U. S. Steel can manufacture the most advanced steel products for American customers," the spokesperson added.
A U.S. Steel spokesperson said in an emailed statement Tuesday that the deal provided the brightest future for the company, its employees, communities and customers.
- "Nippon Steel has committed to preserve U. S. Steel as a U.S. company headquartered in Pennsylvania and to contribute billions of dollars of investment to our mills and communities, securing the future of steelmaking in Pennsylvania and Indiana," the spokesperson said.
- "Investment into the United States advances U.S. national security by enhancing innovation and competitiveness in the United States and bolstering critical global alliances," the spokesperson added.
- "This transaction should be approved on its merits. The benefits are overwhelmingly clear. Our communities, customers, investors, and employees strongly support this transaction, and we will continue to advocate for them and adherence to the rule of law."
Go deeper: If Biden blocks U.S. Steel deal, new questions arise
Editor's note: This article has been updated with statements from U.S. Steel and Nippon Steel.
