Donald Trump has reiterated his commitment to blocking Nippon Steel's bid to acquire United States Steel Corp., a deal worth over $14bn. In a statement posted on his Truth Social platform on December 2, the US president-elect reaffirmed his position, promising to prevent the acquisition as soon as he returns to the White House next month, as reported by Kyodo News.

"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 declared. The comment came as Nippon Steel, Japan's leading steelmaker, aims to complete the purchase of US Steel by the end of this year, just ahead of Trump's inauguration on January 20, 2025.

Trump's opposition to the acquisition aligns with his previous statements during the presidential campaign, where he pledged to block foreign takeovers of iconic US companies, particularly in industries critical to national security. He went on to promise that his administration would use a combination of tax incentives and tariffs to bolster US Steel's competitiveness, asserting that the company would "become strong and great again" under his leadership.

The proposed deal, which would create the third-largest steelmaker in the world, has garnered significant backing from US Steel's shareholders, who view the acquisition as a strategic move to enhance the company's global competitiveness. However, the merger has faced stiff resistance from powerful interest groups, most notably the United Steelworkers union, which is opposed to the deal. The union's objections have added political fuel to the fire, with many arguing that the deal could lead to job losses or weaker labour protections.

President Biden and Vice President Kamala Harris, whose administration faces challenges with union support, also opposed the deal. The timing is particularly sensitive given the steel sector's importance in key battleground states such as Pennsylvania. US Steel, founded in 1901 and based in Pennsylvania, has struggled to keep pace with global competitors and currently ranks 24th globally, according to the World Steel Association.

The US Committee on Foreign Investment (CFIUS), responsible for assessing national security risks in foreign acquisitions, is currently reviewing the merger and is expected to conclude its review by late December. The outcome of this process will determine whether Trump’s stance can sway the final decision on the deal.