President-elect Donald Trump has vowed to block Japan’s Nippon Steel from buying US Steel, a $14.9 billion deal announced a year ago that is currently under review for its potential impact on national security of the United States.
“I am completely against the takeover of the once great and powerful US Steel by a foreign company, namely Nippon Steel of Japan,” Trump wrote on Truth Social Monday evening. “Through a series of tax incentives and tariffs, we will make American steel strong and capable again, and it will happen FAST! »
He added: “As president, I will stop this deal from happening. Buyer beware!!!”
During his election campaign, Trump also promised to block Nippon’s takeover of US Steel.
The Committee on Foreign Investment in the United States (CFIUS), an interagency government committee charged with evaluating foreign acquisitions of U.S. companies, is currently reviewing Nippon Steel’s deal for U.S. Steel.
Trump has pledged to pursue protectionist economic policies to help support American businesses, including imposing tariffs on imports from some of the United States’ major trading partners, including Mexico, Canada and the China. The president-elect said tariffs are a tool that can help protect domestic manufacturingas well as convincing foreign companies to open factories in the United States
In response to Trump’s comments, Nippon Steel said it was “committed to protecting and growing US Steel in a manner that strengthens American industry, domestic supply chain resilience, and state national security.” -United”.
“We will invest as much as $2.7 billion in its unionized facilities, introduce our world-class technological innovation and secure union jobs so that US Steel’s American steelmakers can produce the most advanced steel products for American customers.” , the Japanese company said in a statement. statement.
The acquisition, announcement in December 2023, has garnered attention from the United Steelworkers union as well as a number of lawmakers and elected officials over the past year, President Joe Biden also reportedly ready to block the proposed acquisition.
CFIUS is reviewing the deal due to potential national security concerns and could advise against the merger. In September, the Biden administration extended the review, delaying conclusion on the politically sensitive deal until after the November 5 presidential election.
Under the agreement, US Steel, founded in 1901 by Andrew Carnegie, JP Morgan and Charles Schwab, would retain its iconic name and headquarters in Pittsburgh, while all collective bargaining agreements with the United Steelworkers union would be honored, the company said. businesses.
However, if the deal fails, US Steel has warned it would have to close many of its blast furnaces, putting thousands of jobs at risk and making it harder to compete globally.
contributed to this report.
