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National Post
18 hours ago
- Business
- National Post
Canada to retaliate against U.S. steel, aluminum tariffs if Carney, Trump can't reach deal
OTTAWA — The Canadian Steel Producers Association and United Steelworkers Union are panning Prime Minister Mark Carney's response to U.S. President Donald Trump's punishing tariffs. Article content Their response came hours after Carney announced a tariff countermeasure plan Thursday that includes retaliation against Trump's steel and aluminum tariffs a month from now — depending on how much progress the two world leaders make in their trade discussions. Article content Article content Article content The two steel organizations issued a joint statement late Thursday saying Carney's plan 'falls short of what the industry needs at this most challenging time.' Article content Article content 'We will continue to review the details of the measures and work constructively with the federal government to get a plan that works for Canadian steel producers and the thousands of workers that make up our sector,' Catherine Cobden of the steel industry association and Marty Warren, the union's national director, said in the joint statement. Article content Carney said that while he and Trump are pursuing a deal to end tariffs within the next 30 days, Canadian counter-tariffs will be adjusted on July 21 to 'levels consistent with progress made in the broader trading agreement with the U.S.' Article content 'We must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust U.S. tariffs,' Carney told a press conference on Parliament Hill following a federal cabinet meeting. Article content The announcement came just a few hours before Canadian steel industry representatives were set to publicly call on the government to take immediate action in response to the U.S. tariffs. The steel producers instead held off and scrubbed their press conference. Article content Article content Jean Simard, head of the Aluminium Association of Canada, said in a media statement Thursday that the measures Ottawa announced 'strike the right balance.' Article content Article content He said the government needs to carefully balance 'sending a strong signal towards focused and accelerated negotiations and using a measured approach through adaptive counter-tariffs and reciprocal procurement policies.' Article content 'In this rapidly evolving situation, with potentially high financial impacts due to uncontrollable market reactions, we will need and seek agility and speed for government interventions should we reach the 30-day deadline without a positive resolve,' Simard added.
Qatar Tribune
18 hours ago
- Business
- Qatar Tribune
Nippon Steel-US Steel deal closes with United States safeguards
Agencies Nippon Steel completed its multi-billion-dollar acquisition of US Steel on Wednesday, granting rare veto-like power over strategic decisions to Washington with a 'golden share'. The announcement concludes a saga that began in December 2023, when Nippon Steel agreed to acquire the linchpin of American steelmaking for $14.9 billion. An outright buyout sparked bipartisan political opposition, including from President Donald Trump, who railed against the proposed deal throughout the 2024 presidential campaign. But last month he announced a pivot, branding the revamped venture—blocked by former president Joe Biden on security grounds—as a 'partnership' rather than a takeover. A national security agreement between the companies and the US government provides that approximately $11 billion in new investments will be made by 2028. And Washington's non-economic golden share allows it to appoint one independent director as well as granting consent rights for proposed capital budget cuts among other powers. Nippon Steel CEO Eiji Hashimoto said Thursday in Tokyo that this 'won't hinder activities that we hope to conduct.' 'The agreement is fully satisfactory to us, as it ensures the management freedom... essential for business investment,' Hashimoto told reporters. 'We intend to start implementing measures for revitalization and development as soon as possible,' he said, promising not to 'transfer jobs and production sites elsewhere.' It is 'only natural' that the US government would be concerned about the takeover of a symbolic company, which dates back to 1901, Hashimoto added. A source close to the matter said Nippon Steel had bought all common shares of US Steel, completing the merger. The deal creates the world's fourth biggest steelmaker—but Nippon Steel faces several big challenges, from trade tariffs to weak demand for steel products worldwide. Nippon Steel shares were up 2.4 percent Thursday afternoon, even as Tokyo's benchmark Nikkei index slumped 0.9 percent. Pennsylvania Senator Dave McCormick, a Republican, thanked Trump on X and called the outcome 'a massive victory for working families in the Mon Valley, our economy, our national security, and America's manufacturing future!' But the United Steelworkers (USW) union, which vigorously fought the deal, vowed to 'continue watching, holding Nippon to its commitments,' according to a statement. 'We will use the most powerful tool workers have against global corporations: collective bargaining.' Biden had blocked the transaction in early January, shortly before leaving office. He said that placing 'one of America's largest steel producers under foreign control' could 'create risk for our national security and our critical supply chains.' Besides agreeing to keep US Steel's Pittsburgh headquarters and to maintain US production, the national security agreement calls for a majority of US Steel's board to be US citizens, as are key leaders including the CEO. The 'golden share' does not entitle the US government to dividends, nor does it require Washington to make investments in the company. While the structure gives the government 'extraordinary' influence, the mechanism could be difficult to enforce in a downturn if Nippon fails to comply, said Atlantic Council senior fellow Sarah Bauerle Danzman.
Hamilton Spectator
a day ago
- Business
- Hamilton Spectator
Joly promises quick decision on help for steel, aluminum industries rocked by tariffs
OTTAWA - Industry Minister Mélanie Joly said Thursday U.S. tariffs have left Canada's steel and aluminum industries in a state of emergency and promised the federal government will 'take a decision very quickly' on how it can help. Joly said she was in contact with CEOs in both sectors Thursday morning and over the weekend. 'We know that the Canadian steel and aluminum workers are very anxious and they want us to come up with a solution really, really quickly,' she said. Her comments came as the heads of the Canadian Steel Producers Association and the United Steelworkers were visiting Parliament Hill and calling for urgent action from the federal government. The groups were set to hold a press conference later on Thursday afternoon. Prime Minister Mark Carney is also scheduled to hold a press conference Thursday, along with Joly, U.S.-Canada Relations Minister Dominic LeBlanc and Finance Minister François-Philippe Champagne. U.S. President Donald Trump imposed a 25 per cent tariff on all steel and aluminum imports in March. On June 3, Trump doubled the tariffs to 50 per cent — a move that industry analysts say threatens to cripple Canada's steel industry. The United Steelworkers Union, which represents 225,000 members in Canada, said in a press release that the 50 per cent tariff would completely shut Canada out of the U.S. market. It said Canada should end exemptions that allow U.S. steel to enter Canada without tariffs. The union called on Ottawa to strengthen domestic demand in the longer term and to impose targeted countermeasures to protect the Canadian market from offshore steel. This report by The Canadian Press was first published June 19, 2025.
New York Times
2 days ago
- Business
- New York Times
Nippon Steel Completes Its Acquisition of U.S. Steel
Nippon Steel has completed its acquisition of U.S. Steel, the companies said on Wednesday, more than a year after it was first announced. Soon after Nippon announced its plans to acquire U.S. Steel in December 2023, the company, based in Pennsylvania, a swing state in the presidential election, became part of a game of political football. The powerful United Steelworkers union pushed back against the deal, and President Joseph R. Biden blocked it over national security concerns. Last month, President Trump, who had opposed the deal while he was on the campaign trail, said he had approved a transaction that granted the White House a golden share in the company, giving it extraordinary control over the new company as part of a national security agreement. Mr. Trump and the companies have frequently referred to the deal as a partnership over the past several weeks, fueling mystery on Wall Street and in Washington over its nature. The companies said on Wednesday that they have 'now completed the transaction as contemplated by their merger agreement,' effectively a confirmation that the deal is a sale to Nippon. Shareholders in U.S. Steel had approved an acquisition that would pay $55 a share in cash if it closed. 'Since announcing our deal, I have engaged in extensive dialogue with many stakeholders, including the employees of U.S. Steel, government officials and community leaders,' Takahiro Mori, the vice chairman of Nippon, said in a statement. Want all of The Times? Subscribe.
Japan Forward
3 days ago
- Business
- Japan Forward
US Steel Deal Approved, But Challenges Loom
このページを 日本語 で読む On June 14, Nippon Steel announced that it had secured approval to acquire 100% of the common shares of the major American steel company US Steel. The green light came out of a national security agreement signed with the United States government. With US Steel as a wholly-owned subsidiary, Nippon Steel can transfer its patented technologies to the company, expand its operations, and strengthen both companies' global competitiveness. At the heart of the plan is the creation of a Japan–US steel alliance. The goal is to counter Chinese manufacturers, who now account for nearly half of the world's steel output. Nearly a year and a half after the plan was first announced, that vision is finally coming together. Despite local and company support, the acquisition became a political flashpoint due to strong opposition from the United Steelworkers (USW), a powerful labor union with sway in US presidential elections. Both presidential candidates stated their opposition to the deal during the election. And then-President Joe Biden blocked the deal with an order issued on January 3, 2025, in the last days of his presidency. To resolve the standoff, a compromise was reached: the US government would hold a special "golden share." This grants the sitting US president veto power over key management decisions at US Steel that are deemed to affect national security. Nippon Steel also agreed to grant the US government a degree of oversight after the acquisition, covering areas such as corporate governance, production, and trade policy. The exact scope of the golden share's veto power and the details of the national security agreement have not been disclosed. However, Washington's ability to intervene is believed to be limited. During the American government's review, Nippon Steel pledged that a majority of US Steel's board members would be US citizens. It also committed to appointing Americans to key management roles. With the golden share's powers considered to be within acceptable bounds, Nippon Steel determined that it would still maintain sufficient control over operations to warrant the deal. Meanwhile, China's ongoing overproduction and growing exports continue to destabilize the global steel market. In contrast, the US market remains protected from low-cost steel imports thanks to President Donald Trump's high-tariff policies. US President Donald Trump (©AP via Kyodo) Demand is expected to rise for specialty products like electrical steel sheets used in electric vehicle motors, where Nippon Steel holds a competitive edge through patented technologies. By making US Steel a wholly owned subsidiary, Nippon Steel will be able to fully deploy its proprietary technologies and build a growth strategy focused on capturing the American market. But turning that vision into reality won't be easy. When the acquisition was first announced, Nippon Steel, then the world's fourth-largest steelmaker, was expected to climb to third place after merging with US Steel. However, according to 2024 data from the World Steel Association, the combined company still ranks fourth. While the deal was delayed by political battles in the US, China's Ansteel Group, the third-largest steelmaker, ramped up production. At the same time, US Steel's performance declined. In 2024, US Steel dropped from 24th to 29th in global output rankings and recorded two straight quarters of losses in the first three months of 2025. Beyond the $14.1 billion spent on the acquisition, Nippon Steel plans to invest an additional $11 billion by 2028. Those funds will go toward upgrading US Steel's existing facilities and building new ones. The company aims not only to enhance US Steel through the transfer of its proprietary technologies but also to pursue a Japan–US partnership in emerging fields like hydrogen-based steelmaking. Nippon Steel is prepared to shoulder the significant costs involved. However, those investments come with serious risks. In May, credit rating agency S&P Global Ratings warned that the financial strain from the deal could result in a substantial downgrade of Nippon Steel's credit rating. President Trump's unpredictable tariff hikes may help shield the US from Chinese steel imports, but they also carry potential downsides. Inflation and high interest rates could suppress car sales and construction spending, both major drivers of steel demand. That makes the path to recouping Nippon Steel's massive investment an especially steep one. Author: Noboru Ikeda, The Sankei Shimbun このページを 日本語 で読む
