Trump Vows to Block Japanese Steelmaker from Buying U.S. Steel, Pledges Tax Incentives and Tariffs
HARRISBURG, Pa. — President-elect Donald Trump is emphasizing his commitment to blocking the acquisition of U.S. Steel by the Japanese steel giant Nippon Steel Corp. He aims to utilize tax incentives and tariffs to bolster the renowned American steelmaker.
Trump initially promised during his presidential campaign that he would “instantaneously” halt the deal and reaffirmed this stance in a recent post on his Truth Social platform. He stated, “I am totally against the once great and powerful U.S. Steel being bought by a foreign company” and vowed to employ tax incentives and tariffs to make U.S. Steel “Strong and Great Again, and it will happen FAST!”
As President, Trump declared, “I will block this deal from happening. Buyer Beware!!!” This declaration comes in the wake of President Biden’s similar opposition to Nippon Steel’s attempted purchase of the Pittsburgh-based company. Biden’s administration previously mentioned that they were awaiting a report from the Committee on Foreign Investment in the United States, which is reviewing the transaction for national security implications. This committee is led by the treasury secretary and consists of other Cabinet members, and it has the authority to recommend a block on the transaction to the president.
Before the upcoming November election, the proposed merger has significant political ramifications in Pennsylvania, a key swing state that Trump won. Biden has publicly sided with the United Steelworkers (USW), the labor union, in opposing the deal. In a statement made in March, Biden expressed, “U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.”
Nippon Steel insists it is the only entity capable of making the necessary investments in U.S. Steel’s facilities and enhancing the American steel sector. On Tuesday, both Nippon Steel and U.S. Steel issued statements endorsing the acquisition.
“This transaction should be approved on its 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 adhere to the rule of law,” U.S. Steel stated.
The deal is occurring within a climate of protectionist tariffs that analysts claim have revitalized the domestic steel industry, including U.S. Steel. Although U.S. Steel’s shareholders have approved the deal, the United Steelworkers opposition remains strong.
The union articulated that the deal presents “serious long-term implications for U.S. economic and national security.” It seems that President Trump recognizes the critical role a robust domestic steel industry plays in maintaining national security, along with the significance of the jobs and communities that depend on it, according to the union.
Bipartisan resistance to the deal exists in the U.S. Senate, including from incoming Vice President, Republican Senator JD Vance of Ohio, although some critics claim the federal government’s opposition is politically motivated.
Interestingly, some U.S. Steel workers actually favor Nippon Steel acquiring the company, citing that it appears to have a more stable financial outlook compared to potential rival buyer, Cleveland-Cliffs.
Jack Maskil, a vice president at the Steelworkers local branch in West Mifflin, Pennsylvania, shared his thoughts: “U.S. Steel provided a very, very good life for our families for a lot of years. And we feel that the Nippon deal will allow many more families’ futures to share the same.”
West Mifflin Mayor Chris Kelly mentioned that after meeting with Nippon Steel executives, he was encouraged by their commitments. West Mifflin, located southeast of Pittsburgh, hosts U.S. Steel’s Mon Valley Works-Irvin Plant. “There’s no question in my mind that it’s the best deal moving forward,” Kelly stated during a panel hosted on Tuesday by the conservative think tank Hudson Institute, where Maskil also addressed the issue.
Trump’s remarks followed Nippon Steel Vice Chairman Takahiro Mori’s visit to Pittsburgh and Washington, wherein he met with lawmakers, local officials, and workers in an ongoing effort to gain support for the acquisition.
Nippon Steel’s campaign has included promises to extend its capital investment beyond the original proposal and recently pledged not to import steel slabs that could compete with U.S. Steel’s operations.
As part of the proposed $14.9 billion acquisition of U.S. Steel, Nippon Steel has also committed to investing at least $1.4 billion in USW-represented facilities, refraining from layoffs or plant closures during the duration of the basic labor agreement, and protecting U.S. Steel’s interests in trade matters.
