Photo of the United States Steel logo outside the headquarters building in downtown Pittsburgh April 26, 2010. President-elect Donald Trump is underscoring his intention to block the purchase of U.S. Steel by Japanese steelmaker Nippon Steel Corp., and he’s pledging to use tax incentives and tariffs to strengthen the iconic American steelmaker. Trump said during the campaign that he would “instantaneously” block the deal, and he reiterated that sentiment in a Monday night statement.(AP Photo/Gene J. Puskar via the canadian press) Trump Vows to Block U.S. Steel Sale to Japanese Firm, Citing National Security Concerns


December 04, 2024 Tags:

President-elect Donald Trump has reaffirmed his opposition to the proposed acquisition of U.S. Steel by Japanese steelmaker Nippon Steel Corp., pledging to use tax incentives and tariffs to protect the American steel industry. Trump, who campaigned on promises to bolster U.S. manufacturing, reiterated his stance in a post on Truth Social, saying, “I am totally against the once great and powerful U.S. Steel being bought by a foreign company. I will block this deal from happening. Buyer beware!”

Trump’s position aligns with that of President Joe Biden, who has also opposed the deal. The Biden administration has previously expressed concerns about the national security implications of the merger, which is under review by the Committee on Foreign Investment in the United States (CFIUS). The committee, tasked with evaluating foreign investments for potential security risks, can recommend that the president block a transaction.

In March, Biden issued a statement opposing the acquisition, emphasizing the importance of U.S. Steel’s domestic ownership. “U.S. Steel has been an iconic American company for over a century. It must remain an American company,” Biden said.

The proposed merger has sparked intense political debate, particularly in Pennsylvania, a key swing state. Both Trump and Biden have voiced support for the United Steelworkers union, which opposes the deal, citing concerns about long-term implications for national security and the steel industry’s future.

Despite the opposition, Nippon Steel and U.S. Steel have defended the transaction. In a joint statement, the companies highlighted the potential benefits, including significant investments in U.S. Steel facilities and commitments to avoid layoffs or plant closures during the labor agreement. Nippon Steel has also pledged not to import steel slabs that could undermine domestic production.

The proposed $14.9 billion deal has divided opinions among steelworkers and local officials. Some, like West Mifflin Mayor Chris Kelly, believe Nippon Steel’s financial strength and commitments make it the best option for U.S. Steel’s future. Others remain skeptical, siding with the union’s concerns.

The deal’s fate now hinges on the CFIUS review, with a decision expected later this month. Meanwhile, Trump’s continued opposition underscores the high political stakes surrounding the merger. His statement came shortly after Nippon Steel executives met with lawmakers and local leaders in Pittsburgh, part of an effort to garner support for the acquisition.

As the review deadline approaches, the debate reflects broader questions about the balance between foreign investment and preserving America’s industrial and national security interests.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

The Beer Store Confirms More Closures Across Ontario

The Beer Store is shutting down five more retail locations across Ontario. Three of these stores are in the Greater....

Hudson’s Bay Begins Final Liquidation, Historic Sale Sparks Outcry

Hudson’s Bay, Canada's oldest company, is preparing to close its remaining six stores, marking the end of an iconic era.....

Hudson’s Bay Cuts Commissions During Liquidation Sales

Hundreds of Hudson’s Bay beauty advisers are reeling after the company abruptly cut off their commission pay just weeks before....

World Economic Forum Chairman Klaus Schwab Retires After 50 Years of Global Leadership

Klaus Schwab, the 87-year-old founder of the World Economic Forum (WEF), has stepped down as chairman. After leading the influential....

China Returns $55m Boeing Jet as Trump Tariffs Impact Trade

A Boeing 737 MAX originally bound for China’s Xiamen Airlines made an unexpected return to the US on Sunday. The....

China-U.S. Tariff War Rattles Trade Ties and Businesses

Chinese exporters are on edge as a sweeping tariff war with the United States threatens long-standing trade relationships. What started....

Trump’s Commerce Chief Says, Electronics Tariff Exemption Is Temporary

The U.S. government’s decision to temporarily exempt electronics like smartphones and laptops from tariffs may not offer lasting relief. The....

Hudson’s Bay Insider Bid Protocol Raises Sale Speculation

Hudson’s Bay Company (HBC) has taken a significant step in its ongoing creditor protection process. A new internal protocol shared....

Prada to Acquire Rival Fashion House Versace in €1.25 Billion Deal

In a major move reshaping the global luxury fashion landscape, Prada Group has officially announced its acquisition of Italian fashion....

Biggest Drop in Gas Prices Across Canada: What’s Behind the Relief?

Canadians have been noticing a welcome change at the gas pumps. Over the past few weeks, fuel prices have fallen....

Trump Pauses Reciprocal Tariff for 90 Days, Hits China Harder with 125%

President Donald Trump has announced a temporary relief in his sweeping tariff policy, pausing higher levies for 90 days on....

Wall Street Fears Another ‘Black Monday’ Amid Trump’s Tariff Shock

U.S. stock futures plunged Sunday evening, triggering fears of a repeat of Black Monday, as markets reacted sharply to President....