Nippon Steel Dropping Purchase of US Steel in Favor of 'Big Investment,' Trump Says
Japan-based Nippon Steel Corp. is abandoning its plan to purchase U.S. Steel and is instead hoping to make a “big investment” in the American company, President Donald Trump said during a Feb. 7 press conference.
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“They’re doing it as an investment -- no longer a purchase,” Trump said after a meeting with Japanese Prime Minister Shigeru Ishiba. “I didn't want it purchased, but investment -- I love. And they're going to do a big investment, subject to getting the deal done.”
Ishiba said through a translator that the deal will be “mutually beneficial” for both sides. “The Japanese technology will be provided, and the better-quality products will be manufactured in the United States,” he said. “U.S. Steel will make products which will contribute not only to the United States and Japan, but also to the whole world.”
Nippon Steel and U.S. Steel didn’t immediately respond to requests for comment.
The announcement came about a month after the companies asked a federal court to set aside the Biden administration’s decision to block Nippon Steel’s acquisition of the American firm, which had been reviewed by the Committee on Foreign Investment in the U.S. (see 2501060040).
David McCall, president of the United Steelworkers union, said the group had "no contact with either company or the administration" about the Nippon investment announcement. He also said the union's concerns about any deal "remain unchanged."
"Nippon has proven itself to be a serial trade cheater with a history of dumping its products into our markets," McCall said in an emailed statement. "While we await the details of the proposed investment, we encourage President Trump to continue safeguarding the long-term future of the domestic steel industry by instead seeking American alternatives. Regardless of what comes next, we will continue our work to protect the best interests of our members and communities.”
The Coalition for a Prosperous America, a think tank aligned with Trump's trade policies, urged Trump not to approve any Nippon Steel investment in U.S. Steel. Zach Mottl, CPA chairman, said Nippon Steel is a "state-backed predator that has a rap sheet of bad behavior, including unlawful dumping, that has weakened U.S. Steel, America’s domestic steel industry, and our national security.”