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President-elect Donald Trump pledged to block Nippon Steel’s $15 billion acquisition of U.S. Steel when he returns to the White House in January, escalating tensions over the controversial deal that has drawn criticism from both sides of the political aisle.
“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 posted on his Truth Social platform. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!”
The president-elect’s declaration comes as Nippon Steel, Japan’s largest steelmaker and the world’s fourth-largest producer, races to complete the acquisition before year’s end.
Newsweek contacted the Trump transition team via email on Monday for comment.
The deal, announced in December 2023, has faced significant opposition from a powerful labor union as well as from Trump and President Joe Biden, highlighting a rare bipartisan agreement on a major corporate acquisition.
According to Reuters, Takahiro Mori, Nippon Steel’s vice chairman and key negotiator for the acquisition, expressed optimism about closing the deal under the current administration. “We believe we can close the US Steel deal by the end of the year under the current U.S. administration,” Mori told reporters on Thursday. Before his November 5 election victory, Trump had already promised to block the deal if reelected.
The Committee on Foreign Investment in the United States has extended its review of the proposed acquisition through December. Mori indicated that the committee and antitrust reviews were proceeding “solemnly,” adding that with the election concluded, there was no reason to further delay the review process.
To help secure approval, Nippon Steel has made social guarantees and investment pledges to U.S. Steel and the United Steelworkers union. The company has also offered to sell its stake in a U.S. steel plant joint venture if the acquisition succeeds, demonstrating its willingness to make concessions to close the deal.
Nippon Steel hired former U.S. Secretary of State Mike Pompeo, who served under Trump from 2017 to 2021, as an adviser to help lobby for the deal. Mori indicated that the company needs to build close ties with the incoming administration, suggesting the deal aligns with Trump’s goal of attracting investments.
The controversy unfolds as Nippon Steel faces financial challenges. The company recently revised its full-year net profit outlook to 310 billion yen ($2 billion USD) from a previous forecast of 340 billion yen, citing inventory losses from weak raw material prices and sluggish domestic demand. Despite these headwinds, the company plans to maintain its full-year dividend target at 160 yen per share.