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U.S. Steel acquisition on the ropes
Nippon Steel is pushing back on concerns raised by the Biden administration that its pending acquisition of U.S. Steel for $14.9 billion would undermine U.S. national security.
WASHINGTON - President-elect Donald Trump announced Monday that he would block Nippon Steel’s $14 billion acquisition of U.S. Steel, citing the need to protect domestic manufacturing and national security. The Japanese steel giant has been working to finalize the purchase before Trump is sworn in as president on January 20, but the deal has faced significant political and labor opposition.
"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 on Truth Social. "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!!!"
CFIUS review could determine the deal’s fate
President Biden has already referred the proposed sale to the Committee on Foreign Investment in the United States (CFIUS), a federal panel tasked with assessing foreign investments for national security implications. CFIUS, chaired by Treasury Secretary Janet Yellen, has until next month to issue its findings, which could include recommending approval with conditions, blocking the transaction, or extending the review.
Biden has also expressed concerns about maintaining U.S. Steel’s domestic ownership, calling it "vital" for national security and the American economy.
International pressure mounts as deal moves forward
Despite domestic opposition, Japanese Prime Minister Shigeru Ishiba has lobbied Biden to approve the transaction, emphasizing Nippon Steel’s contributions to global supply chains and economic ties with the U.S. According to Reuters, Nippon Steel remains confident it can finalize the purchase by the end of the year.
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Labor unions weigh in
The deal has also drawn criticism from U.S. labor unions, which have echoed concerns about foreign ownership of one of America’s most iconic manufacturing companies. Trump and Biden’s shared stance on the matter underscores the bipartisan nature of protecting domestic industries in the face of foreign acquisitions.
Next steps and potential outcomes
The CFIUS panel’s decision, expected next month, will likely shape the future of the deal. If Trump follows through with his plan to use tariffs and tax incentives as leverage, Nippon Steel could face additional challenges even if the purchase gains federal approval.
U.S. Steel, a cornerstone of American industry for over a century, now stands at a crossroads as political and economic forces converge to influence its ownership and operation.