NEWS
According to Japan's Mainichi Shimbun on the 25th, US President Trump posted on his social platform on the 23rd local time that US Steel and Nippon Steel will reach a "planned partnership" and US Steel will continue to "stay in the United States." Trump said in the post: "This is a planned cooperation between US Steel and Nippon Steel, which will create 70,000 jobs and bring $14 billion in investment." Bloomberg reported on the 24th that this shocked the market. Last Friday, the stock price of US Steel soared 21%. However, the report mentioned that the post did not provide other details. The Nihon Keizai Shimbun analyzed on the 24th that Trump's statement coincided with the time node of the third round of tariff negotiations between Japan and the United States in Washington on the 23rd, and it is likely to become one of the negotiation topics.
The Nikkei Asian Review reported on the 24th that Trump's unexpected statement issued through social media was made shortly after the White House confirmed that Trump had received the recommendation of the US Foreign Investment Committee (CFIUS) on the acquisition proposal. The committee had previously reviewed the acquisition proposal. According to Reuters on the 23rd, there were internal differences in the recommendations submitted to Trump by the US Foreign Investment Committee. The Daily News noted that Trump did not specify in his post whether he approved the acquisition plan, nor did he mention relevant details, such as Nippon Steel's acquisition of U.S. Steel's shares. However, the U.S. CNBC website reported it under the title "Trump Approves Acquisition."
Nippon Steel and U.S. Steel both responded positively to Trump's positive intention on the acquisition issue. Bloomberg said that both sides used the word "bold" to describe Trump. According to Japan's Jiji Press on the 25th, the Japanese government welcomed the positive turnaround in the stalled acquisition plan on the 24th in response to President Trump's intention to approve the "cooperation" between Nippon Steel and U.S. Steel.
The Japanese government is rushing to collect information in order to finally grasp Trump's true intentions. Japan's Asahi Shimbun said on the 25th that Nippon Steel welcomed Trump's statement, but there is still confusion within the company. Trump has been very negative about Nippon Steel's investment and holding more than half of the shares. In Trump's post this time, it is also difficult to read his intention to approve Nippon Steel's 100% holding of U.S. Steel. According to a source close to Nippon Steel, the US did not have any direct contact with Japan in advance, and Nippon Steel is currently confirming whether it can obtain the operating rights of American steel.
This amazing reversal occurred at a time when the US and Japan were still conducting tariff negotiations. The Mainichi Shimbun reported in another report on the 25th that Japan and the US held the third round of tariff negotiations in Washington on the 23rd local time around the tariff measures of the Trump administration of the United States. After the negotiations, Ryo Akasawa, the Minister of Economic Revitalization of Japan, who represented the Japanese side, said that the negotiation process would be accelerated in order to reach an agreement between the leaders of the two countries during the G7 Leaders' Summit held in Canada in June.
It is reported that during the third round of Japan-US tariff negotiations, Ryo Akasawa once again asked the US to review a series of tariff measures, including a 25% tariff on automobiles and major parts. The US expressed its intention to set the "reciprocal tariffs" implemented by various countries and regions as the minimum tariff, and in principle will not be reduced to below 10%.
The Asahi Shimbun analyzed on the 25th that regarding the Japan-US tariff negotiations, Japan hopes that "it would be best to reach a ministerial agreement first, and then during the G7 leaders' summit, Ishiba Shigeru and Trump can shake hands and make peace" in order to resolve this issue before the Senate election scheduled to be held in early July.
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