Trump Vows to Block Nippon Steel’s Acquisition of US Steel

In a rare display of bipartisan agreement, both President-elect Donald Trump and President Joe Biden have expressed their opposition to a proposed acquisition of U.S. Steel by Japan’s Nippon Steel Corp. The potential deal has sparked debates over national security, economic policy, and the future of the American steel industry.

Trump reiterated his stance against the Nippon merger in a post on his Truth Social platform Monday night, vowing to block the deal if it moves forward. “I am totally against the once great and powerful U.S. Steel being bought by a foreign company,” he wrote, emphasizing plans to leverage tax incentives and tariffs to bolster the domestic steel giant. Promising swift action, he added, “As President, I will block this deal from happening. Buyer Beware!!!”

Trump’s opposition aligns with pledges he made during his presidential campaign, where he called for immediate action to safeguard U.S. Steel from foreign acquisitions. His statement also reflects a broader strategy to prioritize American industries and national security through protectionist policies.

Biden has similarly voiced concerns about the deal, aligning himself with the United Steelworkers union, which has consistently opposed the acquisition. In March, Biden emphasized the historical and strategic importance of U.S. Steel, stating, “U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.”

Related: Japan’s Nippon Steel Eyes Year-End Close on $15B US Steel Deal Amid Political Uncertainty

The Committee on Foreign Investment in the United States (CFIUS), a federal body tasked with reviewing foreign investments for national security risks, is currently evaluating the transaction. While no final decision has been announced, Biden’s White House previously indicated it had not yet received a formal recommendation from the committee. Under U.S. law, the president has the authority to block foreign deals deemed a threat to national interests.

The proposed Nippon acquisition has sparked significant political and economic debate, particularly in Pennsylvania, a critical swing state that both Trump and Biden have courted. Analysts note that Pennsylvania’s steel industry is a key economic driver and a symbol of American industrial strength.

Nippon Steel has defended the deal, arguing that its investment would revitalize U.S. Steel’s factories and enhance the competitiveness of the domestic steel industry. In a statement on Tuesday, the company expressed confidence in the benefits of the merger. U.S. Steel, whose shareholders have already approved the acquisition, also released a statement supporting the transaction.

However, the United Steelworkers union remains firmly opposed, citing potential risks to both the economy and national security. In a statement, the union said the deal carries “serious long-term implications for U.S. economic and national security.” Praising Trump’s vocal opposition, the union noted, “It’s clear that President Trump understands the vital role a strong domestic steel industry plays in our national security, as well as the importance of the jobs and communities the industry supports.”

The bipartisan opposition to the deal has extended to Capitol Hill, where incoming Vice President JD Vance, a Republican senator from Ohio, has joined the critics. While some have accused the federal government’s objections of being politically motivated, the scrutiny reflects a growing consensus on the need to prioritize domestic industries.

Source: The New York Times