President Joe Biden has expressed opposition to the planned sale of U.S. Steel to Nippon Steel of Japan, emphasizing the importance of maintaining strong American steel companies operated by American workers. The President's statement, set to be released on Thursday, underscores the significance of U.S. Steel as an iconic American company that should remain domestically owned and operated.
The proposed acquisition by Nippon Steel, announced in December for $14.1 billion in cash, has raised concerns regarding its potential impact on unionized workers, supply chains, and U.S. national security. Despite assurances from Nippon Steel that there would be no job losses and a commitment to retaining the U.S. Steel name and Pittsburgh headquarters, questions remain about labor agreements and financial transparency.
The White House has indicated that the transaction will undergo review by the Committee on Foreign Investment in the United States, a process that is not publicly disclosed. While President Biden has voiced his opposition to the sale, he is not intervening in the review process or formally blocking the deal.
Former President Donald Trump has also expressed disapproval of the acquisition, stating his intention to block it, citing concerns about foreign ownership of U.S. Steel. The issue has become a focal point in the presidential race, with Biden campaigning in the Midwest to emphasize his commitment to American manufacturing and garner support from union workers.
The United Steelworkers union, with whom Biden has a close relationship, has raised concerns about the merger and its potential impact on existing labor agreements. The union's statement highlighted barriers to closing the deal and questioned Nippon Steel's commitment to transparency.
While Japan is considered a key ally of the United States, concerns have been raised about Nippon Steel's connections to China, given China's significant global steel production. Biden's upcoming meeting with Japanese Prime Minister Fumio Kishida underscores the complexities of balancing economic partnerships with national security considerations.
The outcome of the U.S. Steel acquisition remains uncertain, with stakeholders closely monitoring developments as the review process unfolds.
