Washington – The future of U.S. Steel has been a topic of concern for many Americans, especially with the recent announcement of a planned takeover by Japanese company Nippon Steel. However, President-elect Donald Trump has made it clear that he will not allow this deal to go through.
In a statement on his Truth Social platform, Trump expressed his strong opposition to the takeover, stating, “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.” He went on to promise that through tax incentives and tariffs, he will make U.S. Steel strong and great again, and it will happen quickly.
The deal, worth $14.9 billion including debts, has been met with resistance from both Trump and President Joe Biden. Biden has also voiced his concerns, stating that it is vital for U.S. Steel to remain an American company that is domestically owned and operated.
Nippon Steel, on the other hand, has defended the deal, stating that they are determined to protect and grow U.S. Steel in a way that reinforces American industry, domestic supply chain resiliency, and national security. They have also promised to invest $2.7 billion into the company’s unionized facilities, introduce their world-class technological innovation, and secure union jobs for American steelworkers.
The deal is currently being reviewed by the Committee on Foreign Investment in the United States, a body helmed by Treasury Secretary Janet Yellen that audits foreign takeovers of U.S. firms. The review has been extended by Biden’s administration, pushing a conclusion until after the November 5 presidential election. However, Nippon Steel has stated that they expect the deal to close before the end of the year, while Biden is still in office.
Despite the potential for the deal to be approved after the election, Trump has made it clear that he will block it from happening. This stance is in line with his protectionist economic policies, which he has promised to implement to support U.S. businesses. During his campaign, he even threatened to restart a trade war with China, the world’s second-largest economy.
Trump’s opposition to the deal is not surprising, as he had specifically promised to block Nippon’s takeover of U.S. Steel during his campaign. His vice presidential pick, JD Vance, also led congressional opposition to the deal in the U.S. Senate, where it has been criticized by both Republicans and Democrats.
Some analysts had speculated that Trump’s position may soften after the election, but his recent statement has put those speculations to rest. It is clear that he remains steadfast in his promise to protect American businesses and jobs.
While the deal has faced opposition from various parties, including the steelworkers union, there have also been voices in support of it. In September, some U.S. Steel workers rallied in support of the deal, arguing that it would help keep plants open.
The deal has also been met with criticism from major Japanese and American business groups, who have urged Yellen not to succumb to political pressure when reviewing the proposed acquisition. However, Trump’s statement has made it clear that he will not back down on his stance.
In September, arbitrators ruled that Nippon had proven it could assume U.S. Steel’s labor contract obligations, which was met with criticism from the steelworkers union. However, with Trump’s promise to block the deal, it is likely that the ruling will be revisited.
The future of U.S. Steel remains uncertain, but one thing is clear – Trump is determined to keep it an American company. With his protectionist policies and promises to support U.S. businesses, he is confident that he can make U.S. Steel strong and great again. As he prepares to take office on January 20, Americans can rest assured that their president is committed to putting their interests first.
