Donald Trump has reiterated his staunch opposition to the proposed acquisition of United States Steel Corp. by Japan’s Nippon Steel Corp., vowing to use tariffs and tax incentives to bolster the American steelmaker instead, Bloomberg reports.
The former president’s forceful statement, posted on Truth Social Monday night, throws another wrench into a deal already facing significant political headwinds.
Trump’s declaration comes as the Committee on Foreign Investment in the United States (CFIUS) reviews the acquisition. While the final decision rests with President Biden, who opposes the deal, Trump’s vocal opposition adds significant pressure, particularly given his narrow victory in Pennsylvania, US Steel’s home state, in the recent election.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!”
The news sent ripples through the markets. US Steel shares dipped as much as 8.6% in premarket trading, while Nippon Steel’s shares fluctuated before closing largely unchanged in Tokyo.
Nippon Steel responded to Trump’s statement with a carefully worded email, asserting its commitment to “protect and grow US Steel in a manner that reinforces American industry, domestic supply-chain resiliency, and US national security.”
The deal’s future hinges on CFIUS’s review. The committee granted a request for the case to be refiled in September, effectively delaying a decision. The matter must be presented to President Biden this month unless further delays occur.
The political stakes are high. Pennsylvania, a crucial swing state, is home to US Steel, and both Trump and Biden actively courted union support during the election. The United Steelworkers union also opposes the acquisition. Trump’s pledge to block the deal directly challenges Biden’s stated preference for keeping US Steel under domestic ownership.
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