The future of a number of Japanese and Korean enterprises in recent days by foreign media attention. Japanese Steel Corp’s proposed takeover of a U.S. Steel Company has been publicly opposed by president-elect Donald Trump, Reuters reported Wednesday, “Totally opposed” to the once mighty American Steel Company being taken over by a foreign company. On the same day, the U.S. General Motors announced that it would sell a stake in a joint battery plant to its joint venture partner, South Korea’s LG New Energy, for $1 billion. The U.S. Department of Energy also announced that, a $7.54 billion loan is planned for the battery joint venture between Atlantis and Samsung SDI. In this regard, Reuters and CNBC website in the United States reported that because of the current and next government policy differences, loan implementation, incentives and other issues are uncertain.
The review is coming to an end and the prospect of a takeover is unclear
According to various media reports, Donald Trump said in his post that US steel would be strong again through a series of tax incentives and tariffs. It was the first time Donald Trump had publicly commented on the deal since winning the general election on November 5, Nikkei Asia review reported on the 3rd.
The Japanese iron and steel company said in a statement Wednesday that it is determined to protect and develop U. S. steel companies in a way that strengthens U. S. industry, domestic supply chain resilience and U. S. National Security.
Donald Trump has vowed to block the sale of japanese-made iron, the Guardian reported Thursday, in line with its intention to impose tariffs on foreign imports. The move will further fuel fears of a global trade war when he returns to the White House next month.
The 2023, announced in December, has attracted United Steelworkers and scrutiny from lawmakers and officials over the past year, CBS reported.
In September, the Biden administration extended the review period, postponing the conclusion of the politically sensitive deal until after the election. CFIUS is reviewing the deal for potential national security concerns and is expected to complete its investigation by December 23, biden will then have 15 days to announce his decision.
The Nikkei Asia review said the committee could approve the bid or advise the President to block it. The New York Times reported that Donald Trump’s comments suggested the deal was highly unlikely. Kyodo news agency quoted Japan Business Federation Chairman Shikura YA as saying yesterday that Donald Trump’s comments would not have a major impact.
CBS quoted US Steel as warning that it would have to shut down many blast furnace facilities if the deal failed, leaving thousands unemployed and making it more difficult to compete globally.
If the takeover fails, U. S. steel may face a break-up and a partial sale. U. S. Steel’s Clayton Coke plant in Pennsylvania, Sept. . Visual China
The media is constantly saying“I’m not sure.”
LG New Energy and Samsung SDI’s prospects in the United States have also led foreign media to frequently express“Uncertainty” at a time when the outcome of the Japanese iron acquisition is difficult to predict.
The sale of the General Motors Battery plant to the Korean joint venture comes as the carmaker tries to scale up production of electric cars and faces lower-than-expected consumer demand, according to CNBC. Moreover, under president-elect Donald Trump, there is uncertainty about federal incentives to produce and buy electric cars.
Reuters also said the U.S. Department of Energy plans to provide a $7.54 billion loan to a joint venture between Atlantis and Samsung SDI, it is unclear whether the agency will be able to complete the subsidy before president-elect Donald Trump takes office on January 20. Donald Trump has in the past been critical of the Biden administration’s efforts to stimulate electric car production.
Earlier, Reuters reported that Donald Trump’s transition team was planning to eliminate tax credits for electric vehicle purchases. The Korea Times reported that Donald Trump had publicly said he would repeal the inflation reduction act when he took office. Under the law, the U. S. Government provides a higher tax credit for battery-equipped electric cars if the materials are mined or processed in the U. S. Hyundai Motor Group and three South Korean battery companies, LG New Energy, Samsung SDI and SK on, have invested heavily in recent years to build manufacturing plants in the United States, to comply with the inflation reduction act and receive subsidies for additional incentives.
The report said that with Donald Trump widely expected to reduce tax breaks, there were growing concerns that the companies’ revenues in the US could fall. “We have to watch closely how the inflation reduction law will be amended during Donald Trump’s second term, but there is nothing we can do at the moment because the details of any policy change have not yet been finalised,” said an official at a South Korean carmaker.
With Donald Trump set to become president for a second time, the The Hankyoreh said the country’s three pillar industries — semiconductors, cars and batteries — were expected to face greater external uncertainty.
What’s The Way Out?
According to Yonhap news agency reported on the 3rd, in view of the uncertainty in the United States, the Korean Battery Industry Association held the same day to“The new U. S. government’s battery strategy” as the theme of the Congressional Forum on secondary batteries. LG New Energy, Samsung SDI, SK on and more than 20 related enterprises attended the forum.
Lawmakers said Donald Trump’s possible repeal of the inflation-reduction law on subsidies for electric cars and tax breaks for cutting-edge manufacturing would require a new strategy by South Korean companies. “We are communicating closely with the companies to deal with the various situations brought about by the change in policy tone of the new US government,” said Park Jae-jung, head of the battery, electrical and electronics section of the Ministry of Trade, industry and resources
In response to possible Mexican and Canadian tariffs, the Jiji Press cited analysts as saying that higher tariffs would squeeze product margins and that Japanese companies could face a choice in the future, the first is to pass on the cost of tariffs to product prices, and the second is to shift the production base of Mexico to the United States.
Shihe Zheng, Great Jin’s industry chief, said his company was considering “Adjusting to specifications for South American markets such as Argentina” and changing sales targets for products made in Mexico such as air conditioners for the US.