Trump vows to block Japanese steelmaker from buying US Steel, pledges tax incentives and tariffs
HARRISBURG, Pa. — president-elect Donald Trump underlines its intention to block the purchase of US Steel by the Japanese steel producer Nippon Steel Corp.and he promises to use fiscal stimulus and tariffs to strengthen the iconic American steelmaker.
Trump had promised early in the presidential campaign that he would block the deal “immediately,” and he reiterated that sentiment at a after on his Truth Social platform Monday night.
“I am absolutely opposed to the once great and powerful US Steel being purchased by a foreign company” and will use tax breaks and tariffs to make US Steel “strong and great again, and it will happen FAST!” he wrote.
“As president,” he continued, “I will prevent this deal from happening.” Buyer beware!!!”
President Joe Bidenlike Trump, also opposes Nippon Steel’s purchase of Pittsburgh-based US Steel. Biden’s White House in September said that it had not yet seen a report from the arcane Commission on Foreign Investment in the United Stateswhich reviewed the transaction due to national security concerns. The committee, which is chaired by the Treasury Secretary and includes other Cabinet members, can recommend to the president to block a transaction, and federal law gives the president that power.
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 in his effort to reject the deal.
When he announced his opposition in a March Statement, Biden said: “US Steel has been an iconic American steel company for more than a century, and it is critical that it remains a domestically owned and operated American steel company.”
Nippon Steel has said it is the only company that can make the necessary investments in US Steel’s plants and strengthen the US steel industry. Both Nippon Steel and US Steel released statements in support of the acquisition on Tuesday.
“This transaction must 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 adherence to the rule of law,” US Steel said. .
The agreement follows a long period of protectionism US tariffs which analysts say has revived domestic steel, including US Steel. The shareholders of US Steel have done just that approved the deal, but the United Steelworkers are against it.
In a statement Tuesday, the union said the deal has “serious long-term consequences 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 new vice president, the Republican senator. J.D. Vance of Ohio, although the federal government’s objections to the deal have drawn criticism that the opposition is political.
Some U.S. steelworkers would prefer Nippon Steel to take over the company as it appears to have a better financial balance than another potential buyer, Cleveland-Cliffs.
US Steel “provided our families with a very, very good life for many years,” says Jack Maskil, vice president of the local Steelworkers chapter in West Mifflin, Pennsylvania. “And we believe that the Nippon deal will allow many more families 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. Located southeast of Pittsburgh, West Mifflin is home to US Steel’s Mon Valley Works-Irvin Plant.
“There is no doubt in my mind that this is the best deal going forward,” Kelly said Tuesday during a panel hosted by the conservative think tank Hudson Institute, where Maskil also spoke.
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 in an ongoing campaign of persuasion.
That campaign also included Nippon Steel’s promises to increase its capital commitments beyond the original deal and, more recently, a pledge that it will not import steel plates that would compete with US Steel’s blast furnaces.
As part of the proposed $14.9 billion purchase of US Steel, Nippon Steel also committed to invest at least $1.4 billion in USW-represented facilities, avoiding 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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Boek reported from Washington.