President-elect Donald Trump has reiterated his strong opposition to the proposed acquisition of U.S. Steel by Japanese steelmaker Nippon Steel, vowing to block the $14.9 billion deal when he takes office in January 202512. In a late-night post on his social media platform Truth Social, Trump declared:
“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. As President, I will block this deal from happening. Buyer Beware!!!”23
Nippon Steel, Japan’s largest steelmaker and the fourth-largest globally, announced its intention to acquire U.S. Steel in December 202313. The $14.9 billion deal would create a combined company with an annual production capacity of up to 86 million tons1.
U.S. Steel, founded in 1901 by industrial titans Andrew Carnegie, J.P. Morgan, and Charles Schwab, has been an iconic American company for over a century2. Under the proposed deal, U.S. Steel would retain its name and Pittsburgh headquarters, with Nippon Steel pledging to honor all existing collective bargaining agreements with the United Steelworkers Union2.
The proposed acquisition has faced significant political backlash since its announcement:
Bipartisan Opposition: Both President Joe Biden and President-elect Trump have expressed their disapproval of the deal, advocating for U.S. Steel to remain under American ownership3.
United Steelworkers Union: The powerful labor union has strongly opposed the takeover, citing concerns about long-term consequences for U.S. economic and national security6.
Committee on Foreign Investment Review: The deal is currently under review by the Committee on Foreign Investment in the United States (CFIUS), which assesses foreign acquisitions for potential national security risks25.
Trump’s recent statement marks his first comments on the deal since winning the 2024 presidential election1. He outlined his plan to block the acquisition and support U.S. Steel:
- Tax Incentives: Trump proposed using a series of tax incentives to strengthen U.S. Steel14.
- Tariffs: The president-elect suggested implementing tariffs to protect and bolster the American steel industry14.
- Domestic Revitalization: Trump pledged to “make U.S. Steel Strong and Great Again,” emphasizing a swift turnaround for the company46.
Despite the political opposition, Nippon Steel remains determined to proceed with the acquisition3. The company has made several commitments to address concerns:
- Invest at least $14 billion in U.S. Steel facilities6.
- Maintain American management and add independent U.S. directors to the board3.
- Prioritize U.S. Steel production for domestic market needs3.
- Avoid layoffs or plant closures while the current labor agreement is in effect6.
Nippon Steel argues that the merger would benefit both companies, their workforces, and strengthen the alliance between the United States and Japan3.
The uncertainty surrounding the deal has impacted both companies’ stock prices:
- U.S. Steel shares have declined by over 15% year-to-date17.
- Nippon Steel shares have decreased by more than 4% during the same period1.
Some analysts warn that blocking the deal could unintentionally benefit China, which accounts for over half of global steel production, in maintaining its market dominance3.
As the deadline for the CFIUS review approaches, the fate of the Nippon Steel-U.S. Steel deal remains uncertain. With President-elect Trump’s renewed commitment to block the acquisition and the widespread political opposition, the transaction faces significant hurdles. The outcome of this high-profile case could have far-reaching implications for foreign investment in the United States, particularly in industries deemed critical to national security.
