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President-elect Donald Trump has announced his opposition to a $15 billion bid by Japanese company Nippon Steel to acquire U.S. Steel, stating that he will block the deal as President. Trump, along with President Joe Biden and Vice President Kamala Harris, has expressed concerns about the deal and believes U.S. Steel should remain American-owned. The deal is also opposed by the United Steelworkers union, while some U.S. Steel employees support it.
Nippon Steel argues that the acquisition would benefit both companies, their employees, and the U.S. and Japan as allies. The Japanese government has not commented on the matter concerning individual companies. Nippon Steel has stated that U.S. Steel would stay American-run, with Americans serving on the board and in senior management roles. They promise to prioritize U.S. production, keep headquarters in Pittsburgh, and avoid layoffs or plant closures.
Experts fear that the politicization of the deal could benefit China, the world’s largest steel producer. Biden has allowed Nippon Steel to resubmit its filing for review by the Committee on Foreign Investment in the United States to address national security concerns. Trump has vowed to preserve U.S. Steel through tax incentives and tariffs to make it strong again. The deadline for the review is approaching, with the possibility of an extension.
Overall, the deal has stirred up political opposition and concerns about national security, but Nippon Steel remains determined to proceed with the acquisition. Trump’s opposition could have implications for the global steel market and the relationship between the U.S. and Japan.
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