President-elect Donald Trump has suggested that he wants to oppose a Japanese firm’s $15 billion buyout attempt of US Steel upon taking office, believing the former American titan can eventually stand on its own.
“Through a series of tax incentives and tariffs, we will make U.S. steel strong and great again,” he said on his Truth Social platform on Monday. “As President, I will prevent this transaction from occurring. Buyer beware!!”
Nippon Steel, the intended buyer, stated that it was committed to protecting and growing US Steel.
“We will invest no less than $2.7 billion into its unionised facilities, introduce our world-class technological innovation, and secure union jobs so that American steelworkers at US Steel can manufacture the most advanced steel products for American customers,” the company said in a statement sent to CNN.
The Pittsburgh-based corporation was created in 1901 by a merger of the country’s top steel companies, notably Carnegie Steel Corp., facilitated by bankers JP Morgan and Charles Schwab. The new corporation became the world’s first to be worth more than a billion dollars.
However, in recent years, US Steel’s output and stock market value have fallen significantly below those of other American steel businesses. And the US steel sector is a shell of its former self, with no business ranking among the top ten steel producers in the world.
In September, Nippon Steel was anticipated to re-file its application for a national security assessment by American regulators, giving Japan’s top steelmaker another 90 days to complete its acquisition of a US rival despite political resistance during an election year.
The unexpected development allowed the steelmakers to restart the clock, perhaps keeping the contentious agreement alive. However, Trump, the Republican presidential nominee at the time, had expressed his opposition, as had President Joe Biden and Vice President Kamala Harris.
