President-elect Donald Trump said Monday that he would block a Japanese company’s $15 billion bid to acquire U.S. Steel, a contentious deal that faces widespread political opposition.
Nippon Steel, Japan’s largest steelmaker, announced the deal last December and has said it is determined to see it through despite concerns about the implications for employees, supply chains and U.S. national security.
“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,” Trump said in a late-night post on his Truth Social platform.
“As President, I will block this deal from happening. Buyer Beware!!!”
Trump had expressed opposition to the deal during the presidential election campaign, along with President Joe Biden and Trump’s Democratic rival, Vice President Kamala Harris, who all said the Pittsburgh-based company should remain American-owned. Trump’s comments on it Monday night are his first since he won the election last month.
A senior Nippon Steel executive told reporters last month that the company hoped to close the deal before Trump returns to the White House in January.
The deal is also opposed by the powerful United Steelworkers union, though some other U.S. Steel employees support it. U.S. Steel says it remains committed to the transaction as “the best deal for our employees, shareholders, communities and customers.”
Nippon Steel has argued that the acquisition would benefit both companies and their employees, as well as the U.S. and Japan, a key U.S. ally. The Japanese government has previously declined to comment on matters concerning the management of individual companies.
The company says U.S. Steel would remain American-run, with Americans serving as three of the board’s independent directors, as well as “core senior management members.” It says it would prioritize production at U.S. Steel to meet demand in the American market, the company headquarters would remain in Pittsburgh, and there would be no layoffs or plant closures as a result of the deal.
Experts say that the deal has been politicized and that its failure could inadvertently help China, which produces more than half of the world’s steel, maintain its dominance of the global market. American and international business groups have also expressed concern that the deal is being politicized.
Biden allowed Nippon Steel this year to resubmit its filing with a government panel that reviews foreign investments for national security risks, giving it more time to allay bipartisan concerns. The deadline for the review, by the Committee on Foreign Investment in the United States, is at the end of this month, though it could also be extended.
Trump said he would find a way to preserve U.S. Steel as it is.
“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!” he said.