Trump Says He'd Block Nippon-U.S. Steel Deal, Dubbing it 'Terrible'

The influential United Steelworkers union opposes the deal, and members of Congress in both parties have raised national security concerns.

SEATTLE (Scrap Monster): Republican front-runner and former U.S. President Donald Trump has said he would block Nippon Steel’s deal to buy United States Steel if he wins the November election, highlighting how his economic nationalism could imperil foreign investment in the U.S.

'I would block it instantaneously. Absolutely,” Trump said Wednesday after meeting with the members of the Teamsters union in Washington. 'We saved the steel industry. Now, U.S. Steel is being bought by Japan. So terrible, but yeah, we want to bring jobs back to the country,” he added.

The comments marked Trump’s first public statement on the acquisition since the Japanese company announced in December it had agreed to buy the iconic American steelmaker for $14.1 billion.

Asked for a response, Nippon Steel wrote in an email that it would continue discussions with stakeholders, including the government, in a bid to gain their understanding. 'The purchase would bring great benefits to U.S. Steel, the U.S. steel industry, its customers, workers and the regional community,” the company added.

As president, Trump imposed 25% tariffs on global steel imports and 10% import taxes on global aluminum, citing national security concerns and saying the measures were necessary to boost domestic production. U.S. President Joe Biden has largely kept the steel tariffs in place, while making concessions for some allies such as the European Union. In December, Biden extended an exemption for EU steel and aluminum for two years.

Trump is competing with Biden to win support from blue-collar union voters, who could play a pivotal role in manufacturing-heavy battleground states like Pennsylvania where U.S. Steel is headquartered. Working-class, white voters supported Trump in droves in the past two elections, but Biden has looked to aggressively court the group as well.

The influential United Steelworkers union opposes the deal, and members of Congress in both parties have raised national security concerns.

Biden’s White House has expressed concerns about the sale, which will be reviewed by the Committee on Foreign Investment in the United States (CFIUS). The review could push a decision past the election, and the Biden administration has been emphasizing the need to protect union jobs.

Pennsylvania’s two senators, both Democrats, have called on Biden’s administration to block the deal. CFIUS is led by Treasury Secretary Janet Yellen, and the panel can block, approve or amend a deal — or send it to the president’s desk for a decision.

The Treasury Department declined to comment on Trump’s remarks.

The U.S. steel industry currently produces the majority of the steel consumed domestically, with demand in the world’s largest economy making America one of the most durable markets for its products.

Courtesy: www.japantimes.co.jp