HARRISBURG, Pa. (AP) — President-elect Donald Trump is underscoring his intention to block Japanese steelmaker Nippon Steel Corp.’s purchase of U.S. Steel. to block, promising to exploit tax incentives and tariffs to bolster the iconic American steelmaker.
Trump vowed early in the presidential campaign that he would block the deal “immediately” and reiterated that sentiment in a post on his Truth Social platform on Monday evening.
“I am completely opposed to the once great and powerful U.S. Steel being purchased by a foreign company” and will exploit tax incentives and tariffs to make U.S. Steel “strong and great again, and it will happen FAST!” he wrote.
“As president,” he continued, “I will stop this deal from happening.” Buyer beware!!!”
President Joe Biden, like Trump, opposes Nippon Steel’s purchase of Pittsburgh-based US Steel. Biden’s White House said in September that it had not yet received a report from the secret Committee on Foreign Investment in the United States, which was reviewing the transaction on national security grounds. The committee, which is chaired by the Treasury secretary and includes other Cabinet members, can recommend that the president block a transaction, and federal law gives the president that authority.
Ahead of the November election, the proposed merger had political significance in Pennsylvania, a critical swing state that Trump ultimately won. Biden publicly sided with the United Steelworkers union and tried to reject the deal.
When he announced 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 critically important that it remains an American steel company that is domestically owned and operated is operated.”
Nippon Steel said it is the only company that can make the necessary investments in US Steel’s factories and strengthen the American steel industry. Both Nippon Steel and US Steel released statements supporting the acquisition on Tuesday.
“This transaction should be approved on its merits. The advantages are obvious. Our communities, customers, investors and employees strongly support this transaction and we will continue to advocate for it and upholding the rule of law,” said US Steel.
The deal follows a long series of protectionist U.S. tariffs that analysts say have helped revive domestic steel, including U.S. Steel. US Steel shareholders approved the deal, but the United Steelworkers oppose it.
In a statement Tuesday, the union said the agreement has “serious long-term implications for U.S. economic and national security.”
“It is clear that President Trump understands the critical role that 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 drawn bipartisan opposition in the U.S. Senate, including from the fresh vice president, Republican Sen. JD Vance of Ohio, although the federal government’s objections to the deal have drawn criticism that the opposition is political.
Some U.S. Steel workers would prefer that Nippon Steel take over the company because it appears to have a better financial record than another potential buyer, Cleveland-Cliffs.
“US Steel has provided a very, very good life for our families for many years,” said Jack Maskil, vice president of the Steelworkers local office in West Mifflin, Pennsylvania. “And we believe that with the Nippon deal, many more families will be able to share the same in the future.”
West Mifflin Mayor Chris Kelly said he met with Nippon Steel executives and was pleased with their commitments. West Mifflin is located southeast of Pittsburgh and is home to US Steel’s Mon Valley Works–Irvin plant.
“There’s no question in my mind that it’s the best deal going forward,” Kelly said at a panel discussion hosted by the conservative think tank Hudson Institute on Tuesday, where Maskil also spoke.
The Biden administration committee reviewing the merger is expected to decide on the acquisition later this month or possibly extend the ongoing review.
William Chou, deputy director of the Hudson Institute who specializes in relations with Japan, said that “President-elect Trump’s opinion on the agreement is important.” But with the deadline looming, “it’s up to President Biden to recognize “How this deal will advance the interests of future generations of U.S. Steel union steelworkers.”
Trump’s statement came two weeks after Nippon Steel Vice Chairman Takahiro Mori visited Pittsburgh and Washington to meet with lawmakers, local officials and workers as part of an ongoing persuasion campaign.
That campaign included Nippon Steel’s promise to enhance its capital commitments beyond the original agreement and, most recently, a commitment not to import steel slabs that would compete with US Steel’s blast furnaces.
As part of its proposed $14.9 billion purchase of US Steel, Nippon Steel also pledged to invest at least $1.4 billion in facilities represented by USW, not to undertake layoffs or plant closures during the term of the basic labor agreement, and to protect the best interests of US Steel in commercial matters.
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Boak reported from Washington.
