HARRISBURG, Pa. — President-elect Donald Trump is making it clear that he intends to prevent Japanese steelmaker Nippon Steel Corp. from acquiring U.S. Steel. He has announced plans to employ tax incentives and tariffs aimed at revitalizing the renowned American steel manufacturer.
In the early days of his presidential campaign, Trump pledged to “instantaneously” halt the acquisition, reiterating this commitment in a post on his TruthSocial platform on Monday evening. “I am completely opposed to the once great U.S. Steel being acquired by a foreign company,” he stated, promising that he would utilize incentives and tariffs to make U.S. Steel “Strong and Great Again, and it will happen FAST!”
“I will block this deal from occurring as President. Buyer Beware!!!,” he expressed forcefully.
President Joe Biden also stands against Nippon Steel’s bid for Pittsburgh-based U.S. Steel. The Biden administration mentioned in September that they were awaiting a report from the Committee on Foreign Investment in the United States, which is examining the deal for potential national security threats. This committee has the ability to recommend to the president that a transaction be blocked, a power provided to the president under federal law.
Nippon Steel has stated that it is the sole entity capable of making substantial investments in U.S. Steel’s facilities and enhancing the American steel sector’s strength. Both Nippon Steel and U.S. Steel released supportive statements regarding the acquisition on Tuesday.
U.S. Steel highlighted the merits of the agreement, stating that “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 acquisition emerges in the wake of a significant period of U.S. tariffs aimed at protecting domestic steel that many analysts believe has successfully revitalized local producers, including U.S. Steel. Shareholders of U.S. Steel have given their approval for the deal, yet the United Steelworkers union has voiced strong opposition.
In a statement released on Tuesday, the union expressed that the deal poses “serious long-term implications for U.S. economic and national security.” They recognized, “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.”
Bipartisan dissent regarding the acquisition has been observed in the U.S. Senate, with opposition also coming from incoming vice president and Republican Senator JD Vance of Ohio. Critics have labeled the federal government’s resistance to the deal as politically motivated.
Trump’s remarks arrived two weeks after Takahiro Mori, the vice chairman of Nippon Steel, traveled to Pittsburgh and Washington for discussions with lawmakers, local officials, and workers as part of a lobbying effort. This initiative has featured Nippon Steel’s promise to increase investment commitments beyond the original proposal, along with a recent assurance not to import steel slabs that could compete with U.S. Steel’s blast furnaces.
Nippon Steel has committed to investing a minimum of $1.4 billion in facilities represented by the United Steelworkers, ensuring no layoffs or plant closures throughout the duration of the initial labor agreement, while also pledging to protect U.S. Steel’s interests in trade matters.