US President-elect Donald Trump announced Monday that he intends to block a proposed $15 billion takeover of US Steel by Japanese company Nippon Steel, including the assumption of debt.
“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 wrote on his Truth Social platform. “With Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening.”
US Steel has defended the Nippon deal, arguing that the investment is necessary to sustain its Mon Valley operations in Pennsylvania, which could face closure if the sale is prevented.
Nippon Steel, confident in the deal’s approval, previously announced plans to finalize the acquisition by the end of the year, during President Joe Biden’s tenure. However, Biden has also voiced opposition, emphasizing the importance of keeping US Steel as a domestically owned and operated company.
The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), chaired by Treasury Secretary Janet Yellen. The Biden administration extended the review in September, pushing the decision past the November 5 presidential election.
Despite the delay, Nippon expressed optimism in a November 7 earnings presentation, reiterating expectations to close the deal in 2024, contingent on a national security review. Nippon Vice Chairman Takahiro Mori stated, “Unless the situation changes dramatically, I believe the conclusion will come by the end of the year,” during Biden’s presidency.
Trump, set to be inaugurated on January 20, campaigned on promises of protectionist policies to bolster American businesses. He also hinted at reigniting a trade war with China, emphasizing economic nationalism.
