U.S. President-elect Donald Trump said on Monday a series of tax incentives and tariffs would revive storied American firm United States Steel (NYSE: X), as he reiterated his opposition to Nippon Steel’s planned $15 billion purchase of the company.
“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,” Trump wrote on his social-media platform Truth Social.
“I will block this deal from happening. Buyer Beware!!!”
Nippon Steel hopes to close the deal before Trump retakes the White House on January 20, despite opposition from President Joe Biden and a powerful U.S. labor union.
In a statement on Tuesday following Trump’s comments, Nippon Steel said it would invest at least $2.7 billion into United States Steel’s unionized facilities, secure union jobs, and share technological innovations.
“Nippon Steel is determined to protect and grow U.S. Steel in a manner that reinforces American industry, domestic supply chain resiliency, and U.S. national security,” it said.
In a separate statement, United States Steel (NYSE: X) reiterated its support for the deal, saying it would preserve steelmaking in Pennsylvania and Indiana and that the transaction should be approved on its merits.
Last month, Japanese Prime Minister Shigeru Ishiba wrote to Biden, who has referred the deal to a government panel that reviews foreign investments for national security risks, asking him to approve the transaction, sources have said.
The deadline for that Committee on Foreign Investment in the United States (CFIUS) review is this month. CFIUS could approve the deal, possibly with measures to address national security concerns or recommend that the president block it. It could also extend the review.
The United Steel Workers union, which opposes the deal, welcomed Trump’s comments.
