The elected president of United States, Donald Trumpannounced that it will “block” the acquisition of the American steel company US Steel by the japanese company Nippon Steelan operation of 14.9 billion dollars, including debts.
“I am totally against the once great and powerful US Steel being bought by a foreign company, in this case Nippon Steel of Japan“Trump wrote on his platform Truth Social.
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“Through a series of tax incentives y duty, We will make American steel strong and great again, and it will happen! FAST! As president, I will block this agreement from happening,” added the Republican magnate.
The weakened US Steel has defended that it needs the sales agreement reached in December of last year with Nippon to guarantee sufficient investment in its production plants My Valleyin Pennsylvania, that could close,he alleges,if the operation is blocked.
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The Japanese company insisted after Trump’s messages that it is indeed “steadfast to protect and develop US Steel in a way that strengthens the American industry, the resilience of the national supply chain and the national security” of the country.
“We will invest no less than 2.7 billion in its facilities, “We will introduce our world-class technological innovation and ensure that US Steel’s American steelworkers can make the most advanced steel products for customers,” he said.
Days after the November presidential elections in United States, Nippon Steel assured that he hoped to close the acquisition this year, before Joe Biden be replaced by Trump in the White House on January 20.
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But the Democratic president has also opposed the agreementnational ownership and managementrdo, stating that it is “vital” for US Steel “to remain a US steel company of “.
The sale is under review by a body led by his secretary of the Tesoro, Janet Yellenwhich audits foreign acquisitions of US companies, called Foreign Investment Committee.
In September, the Biden governance expanded its analysis, postponing the conclusion of the delicate agreement until after the presidential elections.
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In a presentation of results from Nippon on November 7the company stated that it expected the transaction to close during “calendar year 2024,” pending a review by US National Security authorities.
“Unless the situation changes drastically, I think the conclusion will occur at the end of the year” during the mandate of biden, the vice president of the Japanese firm,Takahiro Mori,told the press.
Related
How might blocking the acquisition of US steel influence future trade relations between the U.S. and Japan?
Interview Between Time.news Editor and Economic Expert Dr. Sarah Mitchell
Time.news Editor (TNE): Thank you for joining us today, Dr. Mitchell. There’s been significant chatter around President Trump’s recent announcement to block Nippon Steel’s acquisition of US Steel. What are your initial thoughts about this proposed intervention?
Dr. Sarah Mitchell (DSM): Thank you for having me! I think it’s a crucial and timely issue. Trump’s stance taps into broader concerns about national security, economic sovereignty, and the integrity of American industries. By blocking the acquisition, he aligns with a protective approach towards U.S. manufacturing jobs, especially in the steel sector.
TNE: that’s a great point. With the deal valued at $14.9 billion, including debts, can you explain what this might mean for the industry if it were to go through versus if Trump successfully blocks it?
DSM: Certainly. If Nippon Steel were to acquire US Steel, we could see a shift in focus that might prioritize Japanese interests over American needs. This could lead to job losses and a decline in local investments. Alternatively, blocking the deal could bolster domestic steel production, preserving jobs and possibly making U.S. Steel more competitive globally. However,it also risks retaliation from international partners,which could adverse impact trade relations.
TNE: trump’s statement mentioned ”tax incentives and duty” to revitalize American steel. How effective do you think these measures can be in strengthening the industry?
DSM: Tax incentives and duties can play a role, but they must be strategically designed. While they may provide short-term relief and stimulate local production, the long-term success hinges on innovation and modernization of facilities. American steel companies must also enhance sustainability practices to meet global standards, or else, they risk falling behind.
TNE: there seems to be a growing sentiment among Americans to prioritize domestic production. How sustainable do you think this sentiment is? could it lead to major shifts in trade policies?
DSM: It’s a valid concern. As seen with the rise of protectionist policies, there’s definately a faction of the population that prioritizes ‘America First’ strategies. This could lead to a reevaluation of trade agreements and relationships. However, it’s essential to balance protectionism with the need for international cooperation, especially in a globalized economy.
TNE: Lastly, how do you see this situation impacting the future landscape of U.S. manufacturing?
DSM: The future landscape will largely depend on the management’s approach to supporting industries like steel. If they can successfully create a competitive and innovative American steel sector, it may serve as a model for other industries. Tho, if pushed too far into isolationism, we might see a crackdown on beneficial global trade partnerships, which could ultimately limit growth opportunities.
TNE: Thank you, Dr.Mitchell, for sharing your insights. Its certainly a complex issue that will require careful navigation in the coming months.
DSM: My pleasure! The conversation around steel,jobs,and trade is vital,and I’m eager to see how it develops.