Trump repeats claims to block Nippon Steel’s controversial takeover of US Steel

President-elect Donald Trump has vowed to prevent Japan’s Nippon Steel from acquiring US Steel, a $14.9 billion deal that has faced strong opposition from unions, lawmakers, and the current administration.

“I am totally against the once great and powerful U.S. Steel being bought by a foreign company,” Trump stated on Monday via Truth Social. He pledged to implement tax incentives and tariffs to strengthen US Steel and block the deal, signaling a continuation of his protectionist policies aimed at bolstering domestic manufacturing.

The deal, announced in 2023, would see Nippon Steel invest $2.7 billion into US Steel’s unionized operations, retain its iconic brand name, and maintain collective bargaining agreements. Despite these assurances, critics argue the acquisition could jeopardize national security, lead to job losses, and weaken the domestic steel industry. The United Steelworkers union and several politicians, including President Joe Biden and Vice President Kamala Harris, have voiced their opposition.

US Steel, once a symbol of American industrial strength, has struggled in recent years, prompting its search for a buyer. If the deal falls through, the company warns it may have to shut facilities, risking thousands of jobs and further eroding its competitive position globally.

The proposed sale is under review by the Committee on Foreign Investment in the United States (CFIUS), which evaluates foreign deals for security risks. The Biden administration recently extended the review period, delaying a decision until after the presidential election. Trump’s opposition aligns with concerns that foreign ownership of critical industries could undermine national interests.

The debate over US Steel’s future highlights ongoing tensions about foreign influence in key industries and the challenges facing American manufacturing. With Trump’s renewed focus on protectionist policies, the outcome of the CFIUS review could set the tone for his administration’s approach to trade and industry.

The final decision on the acquisition is expected by the end of the year, with significant implications for workers, the economy, and US-Japan trade relations. For now, Trump’s pledge to block the deal adds a new layer of uncertainty to an already contentious transaction.

Source: Truth Social / Media Outlets, Photo: Fotolia