President-elect Donald Trump has announced his opposition to a $15 billion bid by Japanese company Nippon Steel to acquire U.S. Steel. Trump, along with President Joe Biden and Vice President Kamala Harris, believe that U.S. Steel should remain American-owned. The deal has faced political opposition and the powerful United Steelworkers union is against it, although some U.S. Steel employees support it. Nippon Steel argues that the acquisition would benefit both companies and their employees, as well as the U.S. and Japan. The deal has been politicized, with concerns that its failure could benefit China’s dominance in the global steel market.
Despite the opposition, Biden allowed Nippon Steel to resubmit its filing for review by the Committee on Foreign Investment in the United States, which reviews foreign investments for national security risks. The deadline for the review is at the end of the month but could be extended. Trump has stated that he will find a way to preserve U.S. Steel through tax incentives and tariffs to make it strong and great again, emphasizing that the company will not be acquired by a foreign entity. The deal’s implications for employees, supply chains, and national security have been the focus of the debate, with Nippon Steel determined to see it through despite the opposition.
Photo credit
www.nbcnews.com