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Trump has stated that he plans to prevent a Japanese company from acquiring U.S. Steel. This decision aligns with his previous statements during his campaign and poses a threat to a deal that was already facing significant political pushback.
Written by Alan Rappeport and River Akira Davis
Alan Rappeport provided coverage from Washington, while River Akira Davis reported from Tokyo.
On Monday night, President-elect Donald J. Trump announced that he plans to prevent a Japanese company from purchasing U.S. Steel once he becomes president. He stated that he wants to ensure that the iconic American company remains under domestic ownership and does not fall into the hands of a foreign corporation.
This aligns with the views Mr. Trump shared during his campaign this year, but it is the first time he has commented on the deal since becoming president-elect. Analysts had predicted that the deal could still move forward once the political pressure lessened, but Mr. Trump’s comments indicate that it is unlikely to be finalized.
Mr. Trump expressed his strong opposition to the acquisition of U.S. Steel by a foreign company, particularly Nippon Steel of Japan, in a post on Truth Social. He stated that if he becomes President, he will prevent this deal from going through and warned potential buyers to be cautious.
Earlier this year, President Biden and Vice President Kamala Harris expressed their opposition to Nippon’s $15 billion bid for U.S. Steel. The White House was prepared to block the transaction in September before the election. Due to concerns about political influence in the review process, the Biden administration agreed to allow Nippon to resubmit their filing to the Committee on Foreign Investment in the U.S. (CFIUS).
The two steel companies were given an extra three months to prove to the U.S. government that their transaction wasn’t a risk to national security. Both Democrats and Republicans were worried about this. This time frame is almost up, so the Biden administration will have to decide whether to give the companies more time or make a choice about the deal soon.
On Monday, Mr. Trump stated that his economic strategy would guarantee the strength of U.S. Steel even without the anticipated investments from Nippon Steel.
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