According to a report by Nikkei News on December 3rd, newly elected US President Trump publicly opposes Japan Steel Corporation's acquisition of US Steel Corporation.

On December 2nd local time, Trump said on the "Truth Social" platform, "I firmly oppose the acquisition of the once powerful and glorious American steel company by a foreign company (Nippon Steel). As president, I will block this deal. Buyers, be careful

Trump has made it clear that he will block the transaction and promised to quickly revive the US steel industry through tax incentives and tariffs.

The next day, Nippon Steel issued a special public statement stating, "We are determined to protect and develop American steel companies in a way that strengthens American industry, domestic supply chain resilience, and national security

After Trump's public statement was released, Nippon Steel's stock price on the Tokyo Stock Exchange plummeted from a 1% increase to over 1%, reaching 3022 yen per share (approximately $20.18 per share). However, later on, Nippon Steel quickly recovered most of the decline. On December 3rd, the stock price of US Steel Corporation (X.US) fell 6.8% before the US stock market opened.

The New York Times commented that Nippon Steel refused to respond to Trump's latest remarks, but continued to "show loyalty" in a statement on December 3, promising to invest no less than $2.7 billion in union facilities at US Steel to ensure union jobs and share technological innovations. Earlier, analysts predicted that this deal may make progress after the political pressure caused by the US election and other factors subsides. But Trump's latest statement has weakened the possibility of a successful acquisition. It is worth noting that Trump has implemented aggressive protectionist policies in the US steel industry and other manufacturing sectors during his previous presidential term.

However, according to reports from Fox News and Kyodo News, Nippon Steel still hopes to complete the deal before Trump returns to the White House on January 20 next year, and is confident that it will complete the acquisition by the end of this year.

The Committee on Foreign Investment in the United States (CFIUS), which is responsible for reviewing this acquisition case, agreed in September this year for the two companies to resubmit their transaction approval applications and postponed the decision date on whether the acquisition plan can be reached until after the US presidential election in November. The Committee on Foreign Investment in the United States' investigation into this acquisition case will end on December 23, when the committee will make a decision on the transaction. Reuters reported on November 26th that two informed sources revealed that Japanese Prime Minister Shigeru Ishiba had sent a letter to US President Biden, requesting his approval of Nippon Steel's plan to acquire a US steel company. According to a recent report by Axios News Network, if the deal is completed before Trump's inauguration day, it may make it difficult for Trump to withdraw the acquisition.

Scholars have pointed out that another noteworthy aspect of this acquisition is the recent preliminary determination by the US Department of Commerce that hot-rolled steel manufactured by Nippon Steel was exported and sold in the United States at an average price about 29% lower than normal prices between October 1, 2022 and September 30, 2023, against the backdrop of US steel manufacturers filing dumping complaints against Nippon Steel. If the US Department of Commerce officially recognizes this situation in the future, Japanese made iron may be subject to anti-dumping tariffs. If the new tariffs are finally confirmed, it will have a significant impact on Nippon Steel, and the tariffs on its hot-rolled steel products will be significantly increased from the previous 1.39%.

In December last year, Nippon Steel announced a $14.9 billion acquisition of US Steel Corporation. If the acquisition of US Steel Company is successful, Nippon Steel is expected to become the world's second-largest steel producer. Although this acquisition case has been obstructed by various parties in the US political arena, Nippon Steel still promises to take all necessary actions to facilitate the merger.