Trump Pledges to Block U.S. Steel Sale to Japan’s Nippon Steel, Citing National Security Concerns

Trump Vows to Use Tariffs and Incentives
President-elect Donald Trump has reiterated his opposition to the proposed $14.9 billion acquisition of U.S. Steel by Japanese firm Nippon Steel Corp., pledging to use tariffs and tax incentives to protect the American steel giant.

“I am totally against the once great and powerful U.S. Steel being bought by a foreign company,” Trump declared on Truth Social Monday night. “I will block this deal from happening. Buyer Beware!!!”

Biden Administration Aligns Against the Deal
President Joe Biden has also opposed the acquisition, citing national security risks. In September, the administration confirmed that the Committee on Foreign Investment in the United States (CFIUS) is evaluating the merger. The committee, which assesses the national security implications of foreign investments, has the authority to recommend presidential intervention.

Pennsylvania Politics Center Stage
The deal has become a focal point in Pennsylvania, a critical swing state. Biden previously backed the United Steelworkers union in rejecting the merger, highlighting the importance of U.S. Steel remaining domestically owned. “U.S. Steel must remain an iconic American company,” Biden said earlier this year.

Union and Bipartisan Opposition Grows
The United Steelworkers union has voiced strong opposition, warning that the sale could jeopardize U.S. economic and national security. While U.S. Steel shareholders have approved the deal, bipartisan resistance in the Senate, including from incoming Vice President JD Vance, underscores the controversy.

Local Divisions on the Deal
Despite resistance, some union leaders and local officials in Pennsylvania support Nippon Steel’s bid. West Mifflin Mayor Chris Kelly endorsed the deal after meeting with company executives, citing commitments to modernize operations and boost financial stability. “Itā€™s the best deal moving forward,” Kelly said.

Nippon Steel Promises Investments
To win approval, Nippon Steel has pledged over $1.4 billion in investments in U.S. Steel facilities, assured no layoffs during the labor agreement’s term, and promised to protect U.S. Steel’s interests in trade matters. The company also vowed not to import steel slabs that would compete with U.S. Steel’s operations.

Uncertainty Surrounds the Deal
Despite these assurances, Trumpā€™s firm opposition and bipartisan concerns in Washington cast doubt on the merger’s future. Nippon Steelā€™s ongoing lobbying efforts, including recent visits to Pittsburgh and Washington, have yet to sway critics.

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