Backing Japanese Nippon Steel Corp.’s pursuit of U.S. Steel, Mike Pompeo, who held the position of Secretary of State during Trump’s initial term, diverged sharply from President-elect Trump, who pledged to oppose the acquisition.
In an op-ed for The Wall Street Journal published on Friday, Pompeo argued that halting this purchase would jeopardize America’s national security by weakening the country’s capacity for strong and competitive domestic steel production.
According to Reuters, Nippon enlisted Pompeo’s lobbying services for the acquisition effort in July. The Japanese company announced its plans to buy U.S. Steel Corp. for $14.9 billion last year, a move that has faced bipartisan criticism from lawmakers. In September, Nippon requested to refile its acquisition bid, postponing any decisions regarding approval until after the presidential election.
Trump calls for tariffs and tax breaks to restore U.S. Steel, rejecting foreign buyouts
Pompeo emphasized that rejecting the deal would “reinforce, not challenge China’s steel dominance,” referencing a September report by The Economist which stated that China produces more steel than the rest of the world combined each year.
He cautioned that if the U.S. were to block the acquisition, it might signal to China that the U.S.-Japan relationship is troubled, potentially serving as a propaganda victory for the Chinese Communist Party, which could spin this into narratives of American hypocrisy and broken promises to allies.
He concluded by asserting that the deal would bolster domestic steel production, which he believes is essential. He argued that the acquisition would enhance the competitiveness of the domestic steel sector, finally benefiting national security and supporting steelworkers. However, this proposal has drawn criticism from the United Steelworkers union.
David McCall, the international president of the United Steelworkers, expressed concerns based on substantial evidence, noting Nippon Steel’s history of strategically importing both substrate and finished products into the U.S. while managing its overcapacity in Japan and China, negatively affecting American steelmaking and workers.
In a post on Truth Social earlier this month, Trump expressed his strong opposition to the acquisition, stating, “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.” He emphasized a commitment to revitalizing U.S. Steel through tax incentives and tariffs.
Nonetheless, Trump’s recent tariff proposals, which include a 25 percent tariff on all goods from Canada and Mexico, along with an additional 10 percent tariff on all Chinese goods, have drawn backlash from the nation’s trading partners and raised alarms among experts.
