Steel Mills

Trump still sour on Nippon's buy of USS; promises tariff, tax incentives

December 3, 2024

President-elect Donald Trump has maintained his opposition to Nippon Steel’s proposed $14.9-billion deal for Pittsburgh-based U.S. Steel.

“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 said in a post on Truth Social on Monday.

“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!!!” he added.

Though Inauguration Day is not until Jan. 20, Trump has already threatened Canada and Mexico with 25% tariffs on all imports to the US, and China with another 10% tariff in addition to existing trade measures.

USS responds

A spokesman for U.S. Steel said the company will not speculate on potential future policy decisions.

“Right now, our focus is on the future of U.S. Steel and completing our transaction with Nippon,” he said in a statement to SMU on Tuesday.

As previously reported, Nippon expects the US Committee on Foreign Investment’s (CFIUS) national security review to close by the end of December. This would still place it in the waning days of the Biden administration.

More specifically, the company anticipates CFIUS finishing the investigation by Dec. 23, according to a report in the New York Times on Tuesday. Biden will then have 15 days to render a decision.

The article also said that if the deal closes under Biden’s administration, it could be more difficult for Trump to block it later.

On Nov. 26, SMU cited a Reuters report that Japanese Prime Minister Shigeru Ishiba asked President Biden to OK the transaction.

Recall that Nippon has said it will consider suing the US government if the deal is blocked.

USW lauds decision

United Steelworkers (USW) International President David McCall supported Trump’s post.

“It’s clear that President Trump understands the vital role a strong domestic steel industry plays in our national security, as well as the importance of the jobs and communities the industry supports,” McCall said in a statement.

“Our union thanks him for his continuing commitment to American manufacturing and agrees with him that with proper attention, U.S. Steel will flourish well into the future as a domestically owned and operated company,” he continued.

McCall noted the transaction has been under review for more than 10 months. He said more time “won’t change the fact that it’s bad for USW members” where U.S. Steel operates.

Additional time would also not “alter the dire national and economic security risks the deal poses to our country.”

“It’s time for this deal to be rejected, so we can all focus on the future,” McCall concluded.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.