Cleveland-Cliffs CEO Targets U.S. Steel Bid, Slams Japan as “Evil”

HARRISBURG, Pa. (AP) — Cleveland-Cliffs CEO Lourenco Goncalves announced plans Monday to bid for U.S. Steel, calling his proposal an “all-American solution” while launching a scathing critique of Japan during a fiery press conference at the company’s Butler works plant in Pennsylvania.

Goncalves, whose company previously attempted to acquire U.S. Steel in 2023, said he would relocate Cleveland-Cliffs’ headquarters to Pittsburgh and preserve the U.S. Steel name if the deal succeeds. His comments came as the Biden administration extended a deadline for Japan’s Nippon Steel to abandon its own $14.1 billion acquisition of U.S. Steel, citing national security concerns.

“I want to buy,” Goncalves told reporters. “I have a plan, I have an all-American solution in place. The all-American solution centers on people, on workers.”

The announcement sent shares of both companies surging, with U.S. Steel and Cleveland-Cliffs closing up about 6% on Monday. Nucor shares also rose 4%.

During a 90-minute press conference, Goncalves launched an extraordinary attack on Japan, calling the U.S. ally “evil” and accusing it of teaching China how to dump steel on the U.S. market. “Japan is evil. Japan taught China a lot of things,” Goncalves said. “Japan taught China how to dump, how to have overcapacity, how to overproduce.”

The CEO also criticized Japanese Prime Minister Shigeru Ishiba for expressing concern to President Biden about the blocked deal. “Japan beware,” Goncalves warned. “You don’t understand who you are. You did not learn anything since 1945.”

The Biden administration’s decision to block Nippon Steel’s acquisition has created a complex legal and political landscape. The U.S. Committee on Foreign Investment in the United States (CFIUS) extended its review deadline to June 18, 2025, giving the companies more time to potentially complete the transaction. President-elect Donald Trump has also opposed the deal, though his administration could revisit the decision after taking office next week.

U.S. Steel welcomed the extension, stating: “We look forward to completing the transaction, which secures the best future for the American steel industry and all our stakeholders.” However, the United Steelworkers union has opposed the Nippon deal, citing concerns about job security and labor agreements.

Goncalves said his ability to make a new bid depends on U.S. Steel and Nippon Steel abandoning their current agreement. “If I present an offer today, they can’t take it,” he explained. “So the very first thing that needs to happen, the merger agreement needs to be abandoned.”

The battle for U.S. Steel has become a flashpoint in U.S. industrial policy, with both Biden and Trump vowing to protect American steel jobs. Nippon Steel, the world’s fourth-largest steelmaker, has argued that its investment would modernize U.S. Steel’s aging facilities and help the U.S. compete with China.