Trump promises to prevent the purchase of US Steel by the Japanese company Nippon Steel

President-elect Donald Trump highlighted his intention to block the purchase of the American steel company US Steel by the Japanese Nippon Steel Corp. and promised to use tax incentives and tariffs to strengthen the emblematic American company.

Trump had promised early in the presidential campaign that he would “instantly” block the deal and reiterated his intention in a post on his Truth Social social network on Monday night.

“I am totally against the once great and powerful US Steel being acquired by a foreign company and I will use tax incentives and tariffs to make US Steel strong and great again. And it will happen quickly!” he wrote.

“As president,” he added, “I will block this agreement. Buyer: You have been warned!!!”

President Joe Biden, like Trump, also opposes Nippon Steel’s purchase of Pittsburgh-based US Steel. The White House said in September that it had not yet seen a report from the Committee on Foreign Investment in the United States (CFIUS), which typically keeps its work confidential and was reviewing the transaction for national security concerns. CFIUS, chaired by the Treasury secretary and made up of other Cabinet members, can recommend to the president that he block an operation, and federal law gives it that power.

On the eve of the November election, the proposed merger gained political importance in Pennsylvania, a key swing state where Trump ultimately won. Biden publicly sided with the United Steelworkers (USW) union to reject the deal.

When announcing his opposition in a statement in March, Biden said: “US Steel has been an iconic American steel company for more than a century, and it is vital that it remains a nationally owned and managed American steel company.”

Nippon Steel has claimed it is the only company that can make the necessary investment in US Steel factories and strengthen the US steel industry. Both Nippon Steel and US Steel issued statements supporting the acquisition on Tuesday.

“This transaction must be approved on its own merits. The benefits are overwhelmingly clear. “Our communities, customers, investors and employees strongly support this transaction, and we will continue to advocate for them and for compliance with the law,” stated US Steel.

The agreement follows a long period of protectionist US tariffs that analysts say has helped revitalize domestic steel, including US Steel. US Steel shareholders have approved the deal, but United Steelworkers opposes it.

In a statement issued Tuesday, the union said the deal carries “serious long-term implications for the economic and national security of the United States.”

“It is clear that President Trump understands the vital role a strong domestic steel industry plays in our national security, as well as the importance of the jobs and communities the industry supports,” the union said.

The deal has sparked bipartisan opposition in the U.S. Senate, including from the incoming vice president, Republican Sen. JD Vance, although the federal government’s objections to the deal have sparked criticism that the opposition is politically motivated.

Some US Steel workers would prefer that Nippon Steel acquire the company, since it appears to have a better financial balance than another potential buyer, Cleveland-Cliffs.

US Steel “provided a very, very good life for our families for many years,” said Jack Maskil, vice president of the USW local branch in West Mifflin, Pennsylvania. “And we believe that thanks to the agreement with Nippon many more families in the future will be able to enjoy that good life.”

West Mifflin Mayor Chris Kelly said he had met with Nippon Steel officials and was satisfied with their commitments. Located southeast of Pittsburgh, the town of West Mifflin is home to US Steel’s Mon Valley Works-Irvin plant.

“I have no doubt that it is the best agreement going forward,” Kelly said at a panel organized Tuesday by the conservative think tank Hudson Institute, where Maskil also spoke.

Trump’s remarks came two weeks after Nippon Steel Vice President Takahiro Mori visited Pittsburgh and Washington to meet with lawmakers, local officials and workers in an ongoing persuasion campaign.

This campaign has included Nippon Steel’s promise to increase the capital it will invest beyond the original agreement and, more recently, a promise that it will not import steel slabs that compete with US Steel’s blast furnaces.

As part of its proposed $14.9 billion purchase of US Steel, Nippon Steel also committed to investing at least $1.4 billion in facilities represented by USW and not laying off or closing plants during the life of the basic labor agreement. and to protect the interests of US Steel in commercial matters.

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