Trump says he will block Japanese firm's takeover of U.S. Steel

[BumRushDaShow]

Source: NBC News

Dec. 3, 2024, 12:34 AM EST


TOKYO — President-elect Donald Trump said Monday that he would block a Japanese company’s $15 billion bid to acquire U.S. Steel, a contentious deal that faces widespread political opposition.

Nippon Steel, Japan’s largest steelmaker, announced the deal last December and has said it is determined to see it through despite concerns about the implications for employees, supply chains and U.S. national security.

“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump said in a late-night post on his Truth Social platform. “As President, I will block this deal from happening. Buyer Beware!!!”

Trump had expressed opposition to the deal during the presidential election campaign, along with President Joe Biden and Trump’s Democratic rival, Vice President Kamala Harris, who all said the Pittsburgh-based company should remain American-owned. Trump’s comments Monday night are his first on the subject since he won the election last month.

Read more: https://www.nbcnews.com/news/world/trump-says-will-block-japanese-firms-takeover-us-steel-rcna182578

[groundloop]

1. He'll change his mind the instant a Nippon Steel lobbyist makes a "campaign contribution"

[Fullduplexxx]

4. Him giving it the green light means the check cleared

[displacedvermoter]

6. Mike Pompeo

is their chief lobbyist, and he seems to be on the outs with Trump. His presidential ambitions may have been too much out in the open.

[Wiz Imp]

2. I'm really not sure what the best thing for this situation is.

Harris & Biden oppose the deal as well.

https://www.cnn.com/2024/09/04/business/us-steel-nippon-steel-chances/index.html

Biden prepared to block US Steel purchase by Nippon Steel

Then there is this:

https://apnews.com/article/biden-steel-nippon-merger-purchase-pennsylvania-350ea331bd077d68f505acaef7fd7d5c

Biden administration appears to be in no rush to stop U.S. Steel takeover by Nippon Steel

https://www.cnn.com/2024/09/18/business/japan-nippon-steel-us-takeover-extended-hnk-intl/index.html

Biden administration gives Japanese steelmaker more time to make case for controversial deal

https://www.cfr.org/article/blocking-nippon-steel-acquisition-politics-versus-policy

Blocking the Nippon Steel Acquisition: Politics Versus Policy
A decision by President Biden to block Nippon Steel’s purchase of U.S. Steel would not be good policy or good politics.

I do know that in Pennsylvania, we've been bombarded with TV ads and radio ads for months saying that it is critical to US Steel's survival for the sale/merger to take place. I'm sure in the Pittsburgh area, the level of ads is probably 10 times worse.

[NotHardly]

9. Opinion: No American company or parcel of land should be in the hands of another country, period, full stop.

[MichMan]

11. So, all the foreign transplant auto factories should be shut down ?

No more cars and trucks built in the USA from Honda, Toyota, BMW, Nissan, Mercedes, Volkswagen, Hyundai, Kia, or Subaru. Make them close them all down and import all the vehicles from overseas instead.

Won't that put a lot of people out of work?

[Wiz Imp]

18. Exactly. That "opinion" makes no sense.

It's one thing to argue no American assets should be owned by an actual foreign government. But foreign companies owning US assets? That has existed since the beginning of the country 250 years ago. Disallowing such ownership would destroy the country's economy.

https://www.cfr.org/backgrounder/foreign-ownership-us-infrastructure

David Marchick, who co-authored a July 2006 CFR Special Report on foreign investment and national security, says that "attracting foreign investment is in itself a national security imperative of the United States because foreign investment is critical to the vitality and strength of our economy." With the U.S. trade deficit in excess of $725 billion in 2005, a steady influx of money from foreign investors is a necessity. As part of a process known as "in-sourcing," foreign companies employ some 5.3 million American workers in the United States. On average, these workers earn 34 percent more than workers at similar U.S.-owned businesses. Furthermore, foreign companies operating within the United States produce more than 21 percent of all U.S. exports, Malan says.

Welcoming foreign investment is also a fundamental tenet of U.S. trade policy. The aim is to open investment opportunities for U.S. companies abroad while at the same time creating a more stable international system and provide equal opportunities within U.S. borders. "It has been a deep belief of the United States that by taking leadership in economic openness...nations would be knit together," says Holtz-Eakin.

[mathematic]

10. I assure you that the "best thing" is not implicating one of our closest allies as a national security threat

Biden and Harris are wrong. Harris was pandering. Biden is a true believer, like Trump.

There are people in the pittsburgh area that hold on to a romantic notion of steel but most people have moved on or never held that notion. People around the country hold onto the idea that steel workers are doing "real jobs". It's the workplace equivalent of "real america".

Meanwhile, in the real world, the steel industry is not big here. USS has not shown interest in running the types of steelmaking in the region and their statements about eventually shutting down this steelmaking are credible. Nippon has promised to invest billions into PA operations. This is exactly billions more than USS has promised to invest in PA operations.

Beyond all the economics, the thing that makes me the most mad about this is that it throws a critical ally and friend right under the bus. People are out there talking about "Nippon" Steel buying "US" Steel as if it's 1985 and they want to re-live the anti-japanese fervor that swept the nation back then. By suggesting that a Japanese firm is a security threat we are actively making America weaker.

[Polybius]

12. One thing you said I didn't quite understand

People are out there talking about "Nippon" Steel buying "US" Steel as if it's 1985 and they want to re-live the anti-japanese fervor that swept the nation back then.

I don't recall an anti-Japanese fervor in 1985, but I was a kid. It was the same year that a major Japanese company called Nintendo launched their extremely successful NES video game console, and Toyota and Transformers were also taking off.

[BumRushDaShow]

14. "I don't recall an anti-Japanese fervor in 1985"

If you get chance, you should find and watch this -

(I'm a Michael Keaton fan so... )

[MichMan]

15. Just three years after the killing of Vincent Chin in Detroit

Lots of anti Japanese fervor from the UAW. Places were letting people smash a junk Honda or Toyota with a sledgehammer for $1 a hit


https://en.wikipedia.org/wiki/Killing_of_Vincent_Chin

[mathematic]

17. "Resentment of Japanese Is Growing, Poll Shows" NYT, 1982

https://www.nytimes.com/1982/04/06/us/resentment-of-japanese-is-growing-poll-shows.html

I went digging for some contemporary sources and I thought that was a good one that shows the start of a trend that culminated in full-bore cultural panic that lasted a decade.

Since you remember the NES, you may remember Marty McFly getting fired over fax by his Japanese boss in Back to the Future 2 (1989). You may remember Rockefeller Center getting sold in 1989. I firmly believe it was this environment that shaped Trump's views on international relationships. The conversation was about the Japanese buying the symbols of America. That we would lose our identity to foreigners.

By the time the movie Rising Sun (1993) was released, the wave had passed. The movie was heavily criticized for anti-Japanese stereotyping and the plot involving Japanese takeover was seen as passe. The cultural image persisted. You may remember when The Phantom Menace (1999) was released the "Trade Federation" strong arming Naboo were alien monsters given Japanese-accented English voices. They were called out for this and the cultural trope mostly receded.

There were indeed a lot of successful Japanese products. The Japan-bashing was the backlash. During this time, the UK had higher foreign ownership of US assets than Japan. "For some reason" there was no anti-British backlash.

[marble falls]

3. Sure he will. Just like he built "the wall" and got Mexico to pay for it, like he killed ACA.

[Prairie Gates]

5. O, free marketeers! O humanity!

[JohnnyRingo]

7. ... at least until the bribery check clears.

Or maybe if the company CEO tells him how smart and good looking he is.

[Yellowdog-1966]

8. I bet he'll change his mind if Russia put a bid on it.

[Grins]

13. SELL THE DAMN COMPANY!

To the Japanese who are willing to pay $15 BILLION for it. Unlike American investors who don't see a future, because if they did, we wouldn't be having this conversation and political theater. By both sides.

And where is Trump going to come up with $15 BILLION? And can he even block it?

Those facilities in Pittsburgh aren't going anywhere. They are going be updated, modernized, spillover investments will help the local economy, and the employees will keep their jobs. And the new Japanese company will pay - TAXES. All that is good.

I remember in the 1990's when the Japanese bought 30 Rockefeller Center in NYC. It's still there!!! No longer owned by the Japanese who lost their shirts on that buy. And the Japanese buying up hotels on Hawaii beaches. They don't own them anymore, either. None of this had an impact on the economy.

This is theater for Trump's xenophobia hordes who will gobble it all up like the good shit-eaters that they are.

Note: It was wrong for Harris, too.

[sakabatou]

16. Riiiiiiiiight...