President-elect Donald J. Trump said on Monday night that he would block a Japanese company’s proposed acquisition of U.S. Steel upon taking office, declaring that he would not allow the iconic American business to be owned by a foreign firm.
That was in line with sentiments Mr. Trump expressed on the campaign trail this year, but it was his first time weighing in on the transaction since winning the presidential election last month. Some analysts had expected that there could be a way forward for the deal after the political pressure subsided, but Mr. Trump’s remarks suggested that there would be little chance for it to close.
“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,” Mr. Trump wrote in a post on Truth Social. “As President, I will block this deal from happening. Buyer Beware!!!”
President Biden and Vice President Kamala Harris had also indicated this year that they opposed Nippon’s $15 billion bid for U.S. Steel, and the White House had appeared poised to block the transaction in September ahead of the election. Amid concerns that the review process was being politicized, the Biden administration agreed to grant a request by Nippon to resubmit its filing with the agency running the review, which is the Committee on Foreign Investment in the U.S., or CFIUS (pronounced SIFF-ee-yuhs).
That decision gave the two steel makers an additional three months to convince the U.S. government that the transaction did not pose a threat to national security, amid concerns from both Democrats and Republicans. That period is about to expire later this month, forcing the Biden administration to grant the companies another extension or to make a decision about the fate of the deal.
Mr. Trump said on Monday that his economic plan would ensure that U.S. Steel remained strong on its own without the promised investments from Nippon Steel.
“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!” Mr. Trump said.
U.S. Steel was founded in 1901, and its metal has been used to build critical infrastructure across the United States.
The company’s fortunes have fluctuated with changes in global steel markets over the decades. In recent years its finances have become precarious, making it ripe for a takeover. U.S. Steel executives have argued that the deal with Nippon is necessary for the company’s future and that they will have to cut jobs otherwise.
The timing of the acquisition became politically fraught this year because U.S. Steel is based in Pennsylvania, which was one of the most crucial swing states in the election.
Some leaders of the powerful steelworkers union opposed the deal, fearing that Nippon would eventually focus its investments on facilities outside the state and that it would not honor pension agreements.
“The proposed sale is bad for workers, our communities and the domestic industry — as well as our national security, critical infrastructure and domestic supply chains,” the United Steelworkers union said on Monday. “We must continue to resist it.”
Critics of the deal have argued that it could be blocked on national security grounds because the United States would be giving up control of part of its steel supply chain to a foreign company. Proponents of the transaction note that Japan is a close U.S. ally and say that it does not pose a national security threat.
Backers of the deal include Mike Pompeo, who served as secretary of state under Mr. Trump and has been acting as an adviser to Nippon. Wilbur Ross, who was Mr. Trump’s commerce secretary, has also publicly called for the deal to be approved.
Nippon Steel has been focused on influencing the outcome of the deal, operating under the assumption that the final decision would rest with Mr. Biden. If the deal were to close before Mr. Trump took office, it could complicate his efforts to unwind it.
Company officials had expected CFIUS to complete its investigation of the deal by Dec. 23, after which Mr. Biden would have 15 days to announce a decision.
Takahiro Mori, the Nippon executive overseeing the U.S. Steel deal, has spent recent weeks traveling across the United States, meeting with local leaders of the United Steelworkers. He also held discussions with Gov. Josh Shapiro of Pennsylvania.
Internally, the company felt the meetings were productive, and there was optimism that a decision in favor of the deal could come before Christmas.
The White House and U.S. Steel did not immediately respond to requests for comment. Nippon Steel declined to address Mr. Trump’s latest remarks but said in a statement that it 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.”
