"Making US Steel Stronger Again with Tax Benefits and Tariffs"
Donald Trump, the President-elect of the United States, reiterated on the 2nd (local time) his strong opposition to Nippon Steel's acquisition of US Steel, which is considered a symbol of American industrialization. However, the final decision on this US Steel sale rests with President Joe Biden, who still has over a month left in his term.
On the night of the same day, Trump stated on his self-founded social networking service (SNS) Truth Social account, "I am completely opposed to US Steel, once great and powerful, being acquired by a foreign company, in this case Nippon Steel." He added, "As President, I will stop this deal from happening."
He further emphasized, "With a series of tax benefits and tariff measures, I will make US Steel strong and great again," adding, "This will happen quickly." At the end, Trump warned Nippon Steel with the phrase "Buyer Beware!"
Nippon Steel has been undergoing review by the U.S. Committee on Foreign Investment in the United States (CFIUS) since December last year after agreeing to purchase US Steel for $14.9 billion (approximately 21 trillion KRW). CFIUS reviews foreign investments in the U.S. for national security impacts and can require corrective measures or recommend the President block the deal if security concerns arise.
During the U.S. presidential election period, Pennsylvania, where US Steel's headquarters and the United Steelworkers union are located, emerged as a key battleground state. Both the Democratic and Republican parties expressed opposition to the US Steel sale, causing Nippon Steel to face difficulties in acquiring US Steel.
CFIUS is expected to submit a recommendation to President Biden regarding Nippon Steel's acquisition of US Steel by the end of this year. This means the final authority on the acquisition lies with President Biden, not President-elect Trump.
For this reason, Japanese media reported that Japanese Prime Minister Shigeru Ishiba sent a letter to President Biden around the 20th of last month requesting approval for Nippon Steel's acquisition plan. In the letter, Prime Minister Ishiba argued that "Japanese and American steel companies will combine advanced technologies to enhance competitiveness and contribute to strengthening U.S. steel production capacity and increasing employment."
Nippon Steel also announced its intention to complete the US Steel acquisition process by the end of this month. Some analysts believe that Nippon Steel and the Japanese government are actively seeking to finalize the contract before the start of a potential second Trump administration, assuming that President Biden would be less negative about the US Steel sale than President-elect Trump.
However, Bloomberg News forecasted, "At present, the likelihood of this decision being made by Trump is low, but his fervent opposition will be another obstacle to (Nippon Steel's US Steel) acquisition."
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