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President-elect Donald Trump once again vowed to block Nippon Steel’s bid to acquire US Steel and pledged to support the US steel industry.
“I am totally against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump said in a post on his social media platform, Truth Social, late Monday night.
Trump had repeatedly slammed the deal during his presidential campaign, but this was the first time he doubled down on his promise to block the acquisition since he won the presidential election over Vice President Kamala Harris in November.
The president-elect said he would ensure US Steel could survive on its own without the Nippon deal.
“Through a series of Tax Incentives and Tariffs, we will make US Steel Strong and Great Again, and it will happen FAST!” Trump said in his Truth Social post.
US Steel has a yearly production capacity of approximately 20 million metric tons. Combined with Nippon, the largest steel producer in Japan, the companies would have a capacity of up to 86 million tons.
The deal’s opponents have said it could likely be tossed on national security grounds since the US would be giving up part of its steel supply chain to a foreign firm.
US Steel has argued Nippon’s investments are necessary for survival as the company has suffered financial hits over the past few years.
“Nippon Steel is determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply chain resiliency, and U.S. national security,” Nippon Steel said in a statement. “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 US Steel can manufacture the most advanced steel products for American customers.”
US Steel said the deal provides “overwhelmingly clear” benefits and should be approved.
“The transaction with Nippon Steel provides, by far, the brightest future for US Steel, our employees and communities, and our customers,” the company told The Post in a statement. “Nippon Steel has committed to preserve US Steel as a US 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. No other party can do this.”
President Joe Biden and Harris previously spoke out against the deal, and the White House appeared poised to block it in September.
The Committee on Foreign Investment in the US has been reviewing the deal. In September, Biden granted a request from Nippon to resubmit its filing with the committee, giving the steel companies an additional three months to plead their case.
Trump, Biden, Harris and Republican leaders – all of whom opposed the acquisition – turned the deal into a political talking point ahead of the election since US Steel is based in Pennsylvania, one of the key swing states that Trump won.
Takahiro Mori, the Nippon executive working on the deal, even met with Pennsylvania Gov. Josh Shapiro in November.
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