US president-elect Donald Trump has reiterated his intention to prevent Japanese steelmaker Nippon Steel from acquiring US Steel, in order not to allow an iconic domestic producer to be owned by a foreign company, according to media reports.
During his election campaign, Trump openly expressed his opposition to the deal, arguing that the acquisition would affect US steelworkers and the domestic steel industry.
“I am totally against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan. Through a series of tax Incentives and tariffs, we will make US Steel strong and great Again. As president, I will block this deal from happening. Buyer beware!” Trump stated.
Also, US President Joe Biden and US Vice President Kamala Harris had revealed their opposition to the deal and their support for the United Steelworkers (USW) union, saying that US Steel must remain domestically owned and operated.
In a bid to allay the concerns raised by the current US administration, Nippon Steel had stated that US Steel would remain an American company headquartered in Pittsburgh, Pennsylvania, and owned by its subsidiary Nippon Steel North America, with US citizens making up the majority of the board of directors and with its production meeting domestic demand. Additionally, the Japanese steelmaker had pledged to invest at least $2.1 billion in the company.
As SteelOrbis reported previously, Japanese Prime Minister Shigeru Ishiba lately sent a letter to US President Joe Biden with the aim of getting his approval and expediting the process regarding the proposed acquisition of US Steel by Nippon Steel before Trump takes office.