TOKYO — President-elect Donald Trump said Monday he will block a $15 billion bid by a Japanese company to buy U.S. Steel. The deal is controversial and faces widespread political opposition.
Nippon Steel, Japan’s largest steelmaker, announced the deal last December and expressed its determination to see it through despite concerns about the impact on its employees, supply chain and U.S. national security. .
In a late-night post on his Truth Social platform, President Trump said, “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.” ” he said.
“As President, I will prevent this deal from happening. Buyer beware!!!”
Mr. Trump had voiced opposition to the deal during the presidential campaign, along with President Joe Biden and Mr. Trump’s Democratic rival, Vice President Kamala Harris, all of whom said the Pittsburgh-based company He insisted that it should remain in his possession. Trump’s comments Monday night are his first on the subject since winning last month’s election.
Nippon Steel executives told reporters last month that they hoped to complete the deal before Trump returns to the White House in January.
Nippon Steel said in a statement Tuesday that it 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.”
“To help U.S. Steel’s American steelworkers produce cutting-edge steel products for U.S. customers, we have invested more than $2.7 billion in unionized facilities and installed world-class innovation. , ensuring union jobs,” the company said.
U.S. Steel did not respond to a request for comment.
The deal is opposed by the powerful United Steelworkers union, but some other U.S. Steel employees support it. U.S. Steel said it remains committed to this transaction, saying it is “the best deal for our employees, shareholders, communities and customers.”
“We strongly believe this transaction will close based on its performance,” U.S. Steel CEO David Barritt told CNBC in September. “It strengthens national security, it strengthens economic security, it strengthens job security.”
The company said a breakdown in the deal could reduce the global competitiveness of the U.S. steel industry and result in the loss of thousands of union jobs at blast furnace facilities that would otherwise have to close. said.
Nippon Steel maintains that the acquisition will benefit both the company, its employees, and the United States and Japan, a key ally of the United States. Japanese government officials on Tuesday declined to comment on matters related to the management of individual companies.
“Having said that, we believe that to achieve sustainable and inclusive economic growth in the Indo-Pacific region, it is essential for both countries to further strengthen their economic ties, including increasing mutual investment in both countries. We understand. We will cooperate with each other in the area of economic security,” Deputy Chief Cabinet Secretary Kazuhiko Aoki told reporters in Tokyo.
Nippon Steel said U.S. Steel will remain U.S.-managed, with Americans serving as three independent directors and “core senior management members” on the board. The company will prioritize production at U.S. Steel to meet U.S. market demand, its headquarters will remain in Pittsburgh, and the deal will not result in any layoffs or plant closures.
Experts say the deal has been politicized and its failure could inadvertently help China, which produces more than half of the world’s steel, maintain its global market dominance. Pointed out. The United States and international business groups have also expressed concern that the deal is becoming politicized.
Biden earlier this year allowed Nippon Steel to resubmit its application to a government committee that reviews foreign investments for national security risks, giving it time to allay bipartisan concerns. The deadline for review by the Committee on Foreign Investment in the United States is the end of this month, but it may be extended.
President Trump has said he will find a way to preserve U.S. Steel as it is.
“Through a series of tax breaks and tariffs, we will make American steel strong and great again. And it will happen soon,” he said.
Arata Yamamoto reported from Tokyo and Jennifer Jett from Hong Kong.
