(Bloomberg) -- Donald Trump reiterated his opposition to the sale of United States Steel Corp. to Nippon Steel Corp., saying he’d instead use tariffs and tax incentives to revive the American steelmaker.
Trump made the comment in a Truth Social post on Monday night, with the decision on whether it goes forward slated to land on Biden’s desk before Trump’s inauguration. The president opposes it and has said US Steel would remain domestically owned, “guaranteed.” He has stopped short, however, of flatly pledging to kill the $14.1 billion takeover.
Nippon Steel shares fluctuated after the news, before closing little changed in Tokyo. US Steel shares fell as much as 8.9% Tuesday in New York to $37.30 — nearly a third below Nippon Steel’s offer price.
While the decision is not currently poised to fall to Trump, his ardent opposition is nonetheless another obstacle for an acquisition that became a political lightning rod during this year’s US election campaign. The deal is currently under review by the Committee on Foreign Investment in the United States, or Cfius. The takeover must go to Biden this month unless it gets delayed again.
“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,” he wrote. “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!!!”
Nippon Steel is “determined to protect and grow US Steel in a manner that reinforces American industry, domestic supply-chain resiliency, and US national security,” a company spokesperson said in an emailed statement after Trump’s comment.
US Steel is based in Pennsylvania, a crucial battleground state that Biden won in 2020 and Trump took in last month’s election. Both Trump and Biden also jockeyed for the support of union workers, and the deal is opposed by the United Steelworkers union.
“The USW welcomes President Trump’s continued opposition to Nippon Steel’s acquisition of US Steel, a deal with serious long-term implications for US economic and national security,” the USW said Tuesday in a statement. “More time won’t change the fact that it’s bad for USW members.”
Many rank-and-file steelworkers across Pennsylvania supported Trump for his presidential campaign, with some appearing on stage at various rallies he held in the state in the closing weeks of the race. One steelworker who stood beside Trump said in an interview that he spoke to the then-candidate back stage, asking him to not say he would kill the deal because many of their livelihoods depended on its approval.
“I told him, ‘I need one thing from you. I need you not to say you’re going to kill the deal on national television and in front of a couple thousand steelworkers you’re here for’,” USW Local 2227 Vice President Jason Zugai said in a previous interview. “And he said, ‘OK.’”
--With assistance from Shoko Oda, Haruka Iwai and Subrat Patnaik.
(Adds US Steel shares in third paragraph, a USW comment in ninth paragraph.)
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