Nippon Steel will not take majority stake in U.S. Steel: Trump
WASHINGTON, Feb. 9 Kyodo - Nippon Steel Corp. will not have a majority stake in United States Steel Corp., President Donald Trump said Sunday, reiterating his commitment to stop the Japanese company from taking control of its iconic but struggling American counterpart.
Trump also told reporters aboard Air Force One that he will impose new 25 percent tariffs on all steel and aluminum imports into the United States and hold a press conference on reciprocal tariffs on Tuesday or Wednesday.
This was the first time that Trump has unveiled a tariff rate for a specific sector since returning to the White House on Jan. 20, raising the specter of global trade disruptions.
Trump said details of the 25 percent levy will be released Monday. He said the planned reciprocal tariffs, targeting goods from all countries with matching duties, will take effect almost immediately.
On Nippon Steel's blocked $14.1 billion attempt to take over U.S. Steel, he said, "Nobody can have a majority stake." He said "a lot of stupidity," including bad management, has put U.S. Steel in a bad position, but that he believes it can be revived.
"Tariffs are going to help. Tariffs are going to make it very successful again, and I think it (has) good management now," he added.
Trump's comments followed his statement Friday during a joint press conference with Japanese Prime Minister Shigeru Ishiba that Nippon Steel will "invest heavily" in U.S. Steel, instead of seeking to fully own it.
The press conference came after the leaders' first face-to-face meeting, held at the White House.
At the time, the Republican president said he would mediate a deal between the U.S. and Japanese steelmakers, and that he is excited to meet the Tokyo-based company's head next week.
A senior Nippon Steel official told reporters in Tokyo on Monday that Chairman and CEO Eiji Hashimoto will likely attend the meeting, but that no schedule has been set yet for a trip to the United States.
Chief Cabinet Secretary Yoshimasa Hayashi told a press conference that a "bold" plan, "completely different" from the previous idea, is being weighed by the Japanese company.
The top government spokesman also said the new plan aims to ensure a "win-win" outcome for both Japan and the United States, without going into details.
A Japanese government source said Sunday that, during his meeting with Trump, Ishiba presented Nippon Steel's modified plan of no longer aiming for outright ownership of U.S. Steel.
The Japanese government had discussed the updated plan in advance with Nippon Steel, the source said.
Trump and his Democratic predecessor Joe Biden repeatedly insisted that the embattled steelmaker, once a symbol of American economic prowess, should continue to be owned and operated domestically.
During the 2024 presidential election cycle, the current and former presidents aligned with the leadership of the powerful United Steelworkers union, which still opposes Nippon Steel's involvement.
Following the meeting between Trump and Ishiba, the labor union's President David McCall released a statement saying, "Our concerns regarding Nippon's continued interest in U.S. Steel remain unchanged."
Biden's blocking of the deal between the steelmakers in early January, citing security concerns, prompted the Japanese and U.S. companies to file lawsuits to overturn his decision.
The deal, announced in December 2023, has been backed by shareholders, some U.S. Steel workers and communities hosting its facilities.
==Kyodo
