Trump, the president-elect, declared on Monday that he will thwart a Japanese company’s $15 billion offer to buy U.S. Steel, a controversial agreement that is opposed by many politicians.
The largest steelmaker in Japan, Nippon Steel, announced the transaction last December and has stated that it is committed to seeing it through, despite reservations about the potential effects on supply chains, workers, and U.S. national security.
In a late-night post on his Truth Social platform, Trump stated, “I am completely against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan.”
I will prevent this agreement from happening in my capacity as president. Buyer Beware!
During the presidential campaign, Trump, President Joe Biden, and his Democratic opponent, Vice President Kamala Harris, all opposed the purchase, arguing that the Pittsburgh-based business should continue to be owned by Americans. Trump made his first remarks about it Monday night since he was elected last month.
Last month, a top Nippon Steel official told reporters that the corporation wanted to finalize the transaction before Trump’s January return to the White House.
While some U.S. steel workers support the pact, the influential United Steelworkers union also opposes it. According to U.S. Steel, it is still dedicated to the acquisition because it is the greatest option for our customers, communities, shareholders, and employees.
Nippon Steel has maintained that the acquisition will benefit Japan, a significant ally of the United States, as well as businesses and their workers. In the past, the Japanese government has refrained from commenting on issues pertaining to individual company management.
According to the corporation, U.S. Steel will continue to be governed by Americans, with three independent directors and several top management members being Americans. It states that there would be no plant closures or layoffs as a result of the agreement, that production at U.S. Steel would be given priority in order to satisfy demand in the American market, and that the company’s headquarters would stay in Pittsburgh.
The pact has been politicized, according to experts, and its collapse would unintentionally aid China, which produces more than half of the world’s steel, in preserving its market domination. Concerns about the contract being politicized have also been voiced by American and foreign industry associations.
This year, Biden gave Nippon Steel more time to address bipartisan concerns by allowing it to resubmit its filing with a government panel that assesses foreign investments for national security threats. Although it may be extended, the Committee on Foreign Investment in the United States has set a deadline of the end of this month for the evaluation.
Trump promised to find a solution to keep U.S. Steel in its current state.
“We will make U.S. steel strong and great again through a series of tax incentives and tariffs, and it will happen FAST!” he declared.
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