X - Experts Think Trump's Threat To Block Nippon-US Steel Deal Could Have Bigger Consequences For Japan: 'We Thought We're Completely Aligned Countries' | Benzinga
Donald Trump’s recent announcement to impede Nippon Steel’s (OTC:NPSCY) proposed acquisition of United States Steel (NYSE:X) could have significant implications for Japan. The potential failure of the $15 billion deal may prompt Japanese companies to adopt a more cautious approach to future acquisitions in strategic sectors.
What Happened: Trump’s threat to thwart Nippon Steel’s acquisition of U.S. Steel, if he is re-elected, has sparked concerns among Japanese investors, reported Reuters on Monday. The deal, which symbolizes the limits of “friendshoring” between allies, is already facing criticism from U.S. lawmakers and the United Steelworkers union.
Former Japanese Ambassador to the U.S., Kenichiro Sasae, believes that the collapse of the deal could serve as a cautionary tale for Japanese investors. This could potentially impact future acquisitions in sensitive industries, signaling that countries prioritize their core interests despite increased economic cooperation between allies.
“Failure to strike a deal has the potential to damage investment ties and set back friendshoring initiatives,” said Stefan Angrick, a senior economist at Moody’s Analytics.
A former senior Japanese government official highlighted that the Nippon-U.S. Steel situation is a stark reminder for Japanese firms to look into the political implications of their ...