Trump Blocks Nippon Steel Majority Stake and Unveils New Tariffs on Steel and Aluminum

During a press briefing aboard Air Force One, President Trump stated that Nippon Steel Corp. would not obtain a majority stake in the troubled U.S. Steel, emphasizing that complete control by a foreign company was off the table. He attributed part of U.S. Steel's difficulties to mismanagement and odd strategic decisions, claiming that the imposition of tariffs could help restore its former strength through improved management and a more competitive domestic market.

In the same announcement, the President revealed plans to levy a 25 percent tariff on all incoming steel and aluminum, marking the first instance of a clearly defined tariff rate for a specific sector since his recent return to the White House. The details of the tariff were set to be announced shortly, with reciprocal tariffs on goods from nations with matching duties expected to be implemented promptly.

This development came on the heels of a joint press conference with Japanese Prime Minister Shigeru Ishiba, during which it was confirmed that Nippon Steel would invest in U.S. Steel rather than pursuing outright ownership. Discussions between the two countries were framed around arriving at a mutually beneficial arrangement, with both sides diligently revising their approaches to ensure that U.S. Steel remains predominantly American-owned.

Japanese officials and labor representatives, including those from the United Steelworkers union, have voiced their ongoing concerns about any significant Japanese involvement in the company. The debate over ownership remains a contentious issue, having already seen intervention from previous U.S. presidential administrations and legal challenges following earlier attempts at acquisition.