President-elect Donald Trump reiterated his intention to block Nippon Steel's planned takeover of U.S. Steel and pledged to support the U.S. steel industry.
“I am completely opposed to the once great and powerful U.S. Steel being acquired by a foreign company, in this case by Japan's Nippon Steel,” Trump said. post on his social media platformsTruth Social, Monday night.
Mr. Trump repeatedly advocated for the deal during his presidential campaign, but this is the first time he has doubled down on his pledge to block the takeover since his victory over Vice President Kamala Harris in the November presidential election.
The president-elect said he would ensure U.S. Steel could survive on its own without an agreement with Japan.
“Through a series of tax breaks and tariffs, we will make American steel strong and great again. And it will happen soon,” Trump said in his Truth Social post.
US Steel's annual production capacity is approximately 20 million tons. Combined with Nippon Steel, Japan's largest steel producer, the combined production capacity of both companies will be up to 86 million tons.
Opponents of the deal say it is likely to be scrapped on national security grounds because it would mean the U.S. relinquishing parts of its steel supply chain to foreign companies.
U.S. Steel has argued that Nippon Steel has taken a financial hit in recent years and needs investment to survive.
“Nippon Steel is determined to protect and grow U.S. Steel in a way that strengthens U.S. industry, the resiliency of the domestic supply chain, and U.S. national security,” Nippon Steel said in a statement. “We will invest at least $2.7 billion in unionized facilities, introduce world-class innovation, and secure union jobs to ensure that U.S. steelworkers at U.S. Steel work for our U.S. customers.” We will be able to manufacture cutting-edge steel products.”
U.S. Steel did not respond to a request for comment.
President Joe Biden and Harris have previously expressed opposition to the deal, and the White House appears poised to block it in September.
The Committee on Foreign Investment in the United States is reviewing the agreement. In September, Mr. Biden granted Japan's request to resubmit documents to the committee, giving the steel companies an additional three months to submit arguments.
Mr. Trump, Mr. Biden, Mr. Harris and Republican leaders all oppose the deal, and U.S. Steel is based in Pennsylvania, a key battleground state won by Mr. Trump. It turned the deal into a pre-election political issue.
Takahiro Mori, whose Japanese company is working on the deal, also met with Pennsylvania Governor Josh Shapiro in November.
