By MARC LEVY and JOSH BOAK
HARRISBURG, Pa. (AP) — President-elect Donald Trump is underscoring his intention to block the purchase of US Steel by Japanese steelmaker Nippon Steel Corp.and he’s pledging to use tax incentives and tariffs to strengthen the iconic American steelmaker.
Trump had vowed early in the presidential campaign that he would “instantaneously” block the deal, and he reiterated that sentiment in a post. post on his TruthSocial platform on Monday night.
“I am totally against the once great and powerful US Steel being bought by a foreign company” and will use tax incentives and tariffs to make US Steel “Strong and Great Again, and it will happen FAST!” he wrote.
“As President,” he continued, “I will block this deal from happening. “Buy Beware!!!”
President Joe Bidenlike Trump, also opposes Nippon Steel’s purchase of Pittsburgh-based US Steel. Biden’s White House in September said that it had yet to see a report from the secretive Committee on Foreign Investment in the United Stateswhich was reviewing the transaction for national security concerns. The committee can recommend that the president block a transaction, and federal law gives the president that power.
Nippon Steel has said it is the only company that can make the necessary investment in US Steel’s factories and strengthen the American steel industry. Both Nippon Steel and US Steel on Tuesday released statements in support of the deal.
“This transaction should be approved on its merits. The benefits are overwhelmingly clear. Our communities, customers, investors, and employees strongly support this transaction, and we will continue to advocate for them and adhere to the rule of law,” US Steel said.
The deal follows a long stretch of protectionist US tariffs that analysts say has helped reinvigorate domestic steel, including US Steel. US Steel’s shareholders have approved the deal, but the United Steelworkers oppose it.
In a statement Tuesday, the union said the deal carries “serious long-term implications for US economic and national security.”
“It’s clear that President Trump understands the vital role a strong domestic steel industry plays in our national security, as well as the importance of the jobs and communities the industry supports,” the union said.