Nippon Steel invests heavily in US steel after President Trump moved on Friday to block Japanese companies' $14 billion purchase bids on the basis that the Japanese administration is a threat to national security. He said he plans to do so.
Such investments could be a breakthrough in deals that have been encountered with political opposition in the United States if it advances.
Former President Joseph R. Biden Jr. and Trump agreed that American steel would remain US-owned and operated. Last month, the decision to block Biden's deal left the fate of the US iron on the frontier, saying the company must close factories and fire workers.
Rejection also casts a cloud over relations between the US and Japan, traditionally a close ally.
“Psychologically, this concept wasn't good,” Trump, speaking at a press conference on Friday, said of Nippon Steel's plans to buy American steel.
US Steel is based in Pennsylvania, a major campaign state, and the powerful United Steelworkers Union has been staunchly opposed the deal. The union reiterated these concerns on Friday.
“Our union had not contacted either the company or the manager regarding reporting Japanese investment in US steel,” said David McCall, president of United Steelworkers International. “However, concerns about Japan's continued interest in US steel remain unchanged.”
He added: “While waiting for details on the proposed investment, President Trump is encouraging him to continue to protect the long-term future of the domestic steel industry by sought alternatives for America.”
Trump said on Friday that he continued to oppose Japan's owning the company, but that the investment was “very exciting.” He spoke at a press conference with the Japanese Prime Minister at the White House, when the two leaders discussed trade, tariffs and investment in the United States.
Trump did not explain the investment details, such as how much steel Japan would put us in or how such arrangements would be structured. He described the term as “mediating and arbitrating.”
Isba also spoke optimistic about the concept of investment.
“Japanese technology is provided and better quality products are produced in the US,” he said.
A Japan spokesman declined to comment, while a US Steel spokeswoman did not immediately return a request for comment.
After Biden blocked the contract, the companies filed a lawsuit, claiming that the review process carried out by the US Foreign Investment Commission was corrupted by politics. They alleged that American steel workers and the steel industry were harmed because the deal was blocked.
Lauren Hirsch contributed the report.
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