President-elect Donald Trump has reaffirmed his commitment to blocking the acquisition of US Steel by the Japanese firm Nippon Steel Corporation, vowing to utilise tax incentives and tariffs to bolster the American steel giant.
Trump, who had previously promised during his presidential campaign to immediately prevent the deal, reiterated his stance in a post on his TruthSocial platform on Monday evening.
“I am totally against the once great and powerful US Steel being bought by a foreign company,” he declared, pledging to make the company “Strong and Great Again” using tax measures and tariffs.
“As President, I will block this deal from happening. Buyer Beware!!!” he added.
Like Trump, President Joe Biden has also voiced his opposition to the purchase of the Pittsburgh-based steel company. The Biden administration in September noted it had not yet received a report from the Committee on Foreign Investment in the United States (CFIUS), which is reviewing the deal for any potential national security concerns. This committee can advise the president to block such transactions, a power the president holds under federal law.
Nippon Steel, however, argues that it is the only company capable of making the necessary investments to revitalise US Steel’s factories and strengthen the US steel industry. Both companies issued statements on Tuesday in support of the deal.
US Steel said, “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.”
The proposed deal comes after years of US tariffs aimed at protecting domestic steel, including U.S. Steel, which many analysts believe have helped revive the industry. While US Steel’s shareholders have approved the transaction, it faces opposition from the United Steelworkers (USW).
In a statement on Tuesday, the USW raised concerns over the deal’s potential long-term impact on both US economic and national security.
“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 union stated.
The deal has also faced bipartisan opposition in the US Senate, including from Ohio Republican Senator and incoming Vice President JD Vance, although the federal objections have drawn criticism for being politically motivated.
Trump’s statement followed a visit to Pittsburgh and Washington by Nippon Steel’s vice chairman, Takahiro Mori, who has been meeting with lawmakers, local officials, and workers to garner support for the acquisition. As part of its ongoing lobbying efforts, Nippon Steel has promised to increase its capital investment in US Steel and recently pledged not to import steel slabs that would compete with US Steel’s operations.
Nippon Steel has also committed to investing at least $1.4 billion in USW-represented facilities, avoiding layoffs or plant closures during the term of the basic labour agreement, and prioritising US Steel’s interests in trade matters.
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