Investing.com — Shares in United States Steel Corporation (NYSE:) fell sharply after President-elect Donald Trump on Monday reiterated his plans to block a takeover of the company by Japan’s Nippon Steel Corp (TYO:), while stating that fiscal stimulus and tariffs will benefit the ailing US steelmaker.
“I am absolutely opposed to the once great and powerful US Steel being purchased by a foreign company, in this case Nippon Steel of Japan. Through a series of tax breaks and rates, we will make US Steel strong and great again,” Trump said in a social media post.
“As president, I will prevent this deal from happening. Buyer beware!!!”
Shares in US Steel fell more than 8% in premarket trading on Tuesday.
Trump had repeatedly criticized the deal, claiming it would hurt American workers. The president-elect has promised to introduce tax breaks for American companies as well as tariffs on all imports into the country under his second administration.
Nippon Steel’s $15 billion acquisition of US Steel is currently under review by the Committee on Foreign Investment in the United States, with a decision expected later in December.
Recent reports indicate that Nippon Steel hoped to expedite the deal before Trump takes office on January 20.
The acquisition has sparked controversy over potential national security concerns and the potential compromises it could pose to the U.S. steel industry. Nippon Steel has made several commitments and assurances to obtain regulatory approval.
Ambar Warrick contributed to this report.
