Trump Says He’ll Make U.S. Steel ‘Great Again’ Through Tariffs, Warns Nippon Steel: ‘Buyer Beware!’ – Nippon Steel (OTC:NPSCY), United States Steel (NYSE:X)

President-elect Donald Trump has reiterated its opposition to the takeover of United States Steel Corp. X of Japan Nippon Steel Corp. NPSCY in a Truth Social post on Monday.

What happened: Trump declared his intention to block the deal and emphasized his commitment to strengthening US Steel through tax incentives and tariffs.

Trump’s post said: “I am absolutely opposed to the once great and powerful U.S. Steel being purchased by a foreign company, in this case Nippon Steel of Japan.” Through a series of tax incentives and tariffs, we are becoming U.S. Steel again strong and great, and FAST! As president, I will prevent this deal from happening. Buyer beware!!!”

His comments come amid ongoing discussions about the $14.1 billion acquisition that Nippon Steel plans to complete by year-end. The deal faces opposition from various fronts, including labor unions and the current Biden administration.

Nippon Steel remains optimistic about the deal, arguing that it will benefit the U.S. economy by creating jobs and increasing competitiveness against China’s steel industry.

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Why it matters: Trump’s stance on the Nippon Steel deal underscores his expected policies that could impact international trade relations. Analysts suspect his return to the White House could lead to increased support for the domestic steel industry through deregulation and tariffs.

Nippon Steel’s takeover of US Steel is being criticized by lawmakers and the United Steelworkers union, who are concerned about job security. The possible collapse of the deal could also have broader implications for future acquisitions by Japanese companies in strategic sectors.

Trump’s election victory has already sparked market reaction, with analysts predicting a positive reaction for steel stocks due to possible tariffs on Chinese and Mexican steel.

Image via Shutterstock

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This story was created with Benzinga Neuro and edited by Shivdeep Dhaliwal