In a bold move, US President-elect Donald Trump has expressed strong opposition to the proposed takeover of US Steel by Japan’s Nippon Steel. Trump took to Truth Social to announce his intentions to block the acquisition, claiming that the deal would undermine the American steel industry. He emphasised that his administration would leverage tax incentives and tariffs to fortify US Steel, ensuring its continued strength in the global market.
“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 stated. “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!!!” Nippon Steel, which is aiming to finalise the acquisition ahead of Trump’s potential return to office on January 20, remains hopeful about completing the deal under the current US administration. Takahiro Mori, Nippon Steel’s vice chairman, expressed confidence that the deal could be closed by the year-end. Despite this, the acquisition faces resistance from President Joe Biden’s administration and powerful American labour unions, who have raised concerns about national security and job implications.
To address these concerns, Nippon Steel has made several commitments, including social guarantees, investment pledges, and promises to sell a stake in a US steel plant joint venture if the acquisition proceeds. The company sees the US market as essential for its growth, particularly as it seeks to reduce exposure to risks associated with China’s steel market. The acquisition process is currently under review by the Committee on Foreign Investment in the United States (CFIUS), a government body tasked with evaluating foreign investments’ national security impacts. The committee’s findings are expected next month, potentially with safeguards to address national security concerns, or a recommendation for presidential intervention to block the deal. Trump’s stance further complicates the ongoing negotiations and signals a growing debate over foreign ownership of critical American industries, particularly in the context of national security.
