President-elect Donald Trump is pledging to block Japan’s Nippon Steel from buying U.S. Steel, a $14.9 billion deal announced a year ago that is now under review for its potential impact on U.S. national security.
“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 wrote on Truth Social late Monday. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!”
He added, “As President, I will block this deal from happening. Buyer Beware!!!”
While on the campaign trail, Trump had also promised to block Nippon’s takeover of U.S. Steel.
The Committee on Foreign Investments in the United States (CFIUS), an interagency government panel that assesses foreign acquisitions of U.S. companies, is currently examining Nippon Steel’s deal for U.S. Steel.
Trump has vowed to pursue protectionist economic policies to help support U.S. businesses, including imposing tariffs on imports from some of America’s key trading partners, including Mexico, Canada and China. The president-elect has said tariffs are a tool that can help protect domestic manufacturing, as well as convince foreign companies to open plants in the U.S.
In response to Trump’s comments, Nippon Steel said it was “determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply chain resiliency and US national security.”
“We will invest no less than $2.7 billion into its unionized facilities, introduce our world-class technological innovation and secure union jobs so that American steelworkers at U.S. Steel can manufacture the most advanced steel products for American customers,” the Japanese firm said in a statement.
The acquisition, announced in December 2023, has sparked scrutiny from the United Steelworkers union as well as a number of lawmakers and elected officials in the past year, with President Joe Biden reportedly also prepared to block the proposed acquisition.
CFIUS is reviewing the deal for potential national security concerns and could advise against the merger. In September, the Biden administration extended the review, pushing a conclusion on the politically sensitive deal until after the Nov. 5 presidential election.
Under the deal, U.S. Steel, founded in 1901 by Andrew Carnegie, J.P. Morgan and Charles Schwab, would keep its iconic name and headquarters in Pittsburgh, while all collective bargaining agreements with the United Steelworkers Union would be honored, the companies have said.
However, if the deal falls through, U.S. Steel has warned it would have to close many of its blast furnace facilities, risking thousands of jobs and making it more difficult to compete globally.
contributed to this report.