CPA Fumes at Nippon Steel Taking Partial Ownership of U.S. Steel
U.S. President Donald Trump with Prime Minister Shigeru Ishiba of Japan Image credit The White House
Nippon Steel has a long history of dumping in the U.S. market: CPA
By Raisina Correspondent
New Delhi, February 8: With U.S. President Donald Trump announcing a U-turn on Nippon Steel taking stakes in the largest American steelmaker, the Coalition for a Prosperous America (CPA) has warned against any deal for the U.S. Steel.
The CPA protested in a statement move to give “partial ownership of a critical pillar of America’s industrial base to a foreign entity”. “Nippon Steel has a long history of dumping in the U.S. market — predatory trade actions that should not be rewarded with a stake in U.S. Steel,” added the CPA in its statement.
It also stated that “Japan’s heavily subsidized steel industry has long sought to dominate global markets through predatory practices. Allowing this acquisition to proceed would have rewarded these tactics and set a dangerous precedent for other foreign buyers.”
The CPA quoted a report released last year from Horizon Advisory, which had given details of the “longstanding relationship between Nippon Steel and the Chinese steel industry”. The CPA warned that allowing Nippon Steel a stake in U.S. Steel could pose a danger to American national and economic security.
“President Trump was right to recognize the importance of tariffs in protecting our steel industry from foreign dependence. But allowing a foreign company with a long history of dumping in the U.S. market to make an investment in U.S. Steel contradicts that very principle,” said Zach Mottl, Chairman of CPA, in a statement.
Mottl also stated that “Nippon Steel is a state-backed predator that has a rap sheet of bad behavior, including unlawful dumping, that has weakened U.S. Steel”.
U.S. President Donald Trump on Friday announced that Japan’s Nippon Steel will not buy U.S. Steel but invest heavily. Trump’s statement came after his predecessor Joe Biden had blocked the buyout deal of the U.S. Steel by Nippon Steel.
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Trump made the announcement while addressing a press conference with visiting Japanese Prime Minister Shigeru Ishiba at the White House.
“Assets that we have and Japan is going to be opening up auto plants. New auto plants are being built currently as we speak. They’ve just been started,” Trump said while speaking on bilateral economic relations. He named Japanese car maker Toyota.
“Toyota’s one and Nissan’s going to be doing something very exciting about U.S. Steel,” said Trump while wronly calling Nippon Steel as Nissan. They’ll be looking at an investment rather than a purchase, added Trump.
Trump further said that “we didn’t like the idea (of the purchase of the American steelmaker by a Japanese company) …U.S. Steel is a very important company to us”.
“It was the greatest company in the world for 15 years… many years ago… 80 years ago. And we didn’t want to see that leave and it wouldn’t actually leave, but the concept psychologically not good. So, they’ve agreed to invest heavily in U.S. Steel as opposed to own it,” added Trump.
And that sounds very exciting, said the U.S. President. His statement is seen vague about the deal by the Japanese steelmaker which was wrongly called Nissan by him on several occasions.
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Trump also said that there will be negotiations. He also spoke of him mediating and even arbitrating in the negotiations.
The president did not reveal details of the proposed investment, and said he and other officials will meet next week with the head of Nippon, which Mr. Trump mistakenly referred to as “Nissan” several times. “They’ll work out the details. I’ll be there to mediate and arbitrate,” he said.
“People close to the deal were uncertain about whether Trump wants them to restructure the deal or start again from scratch,” CBS News said in a report.
Trump had taken a position against Nippon Steel in December. He had posted his disapproval of the Japanese steelmaker buying out the American firm in a post on his social media platform Truth Social.
“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 had posted in December on Truth Social.
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