President Joe Biden has expressed his opposition to the sale of U.S. Steel to Japan-based Nippon Steel Corp. In a statement released on March 14, President Biden emphasized the importance of maintaining strong American steel companies powered by American steelworkers. This decision comes after Washington politicians, including U.S. Sens. Bob Casey and John Fetterman, and Rep. Chris Deluzio, sent a letter urging the Committee on Foreign Investment in the United States to block the proposed acquisition.
The opposition to the sale is rooted in concerns about national security, as steel plays a vital role in building ships, airplanes, ammunition, and firearms. The United Steelworkers union (USW), representing 850,000 members, also opposes the sale and favors a sale to a U.S.-owned company. President Biden’s stance may be tied to the voter support he seeks from the USW.
Cleveland-Cliffs mining company had made a bid for U.S. Steel in August 2023, valuing the company at $7.25 billion. The USW had favored this deal as it would have kept ownership in the United States. The union has filed grievances against U.S. Steel, alleging violations of union contracts related to the proposed sale. They are concerned that the new company may not honor these agreements in the long run.
Nippon Steel had agreed to keep U.S. Steel’s name and headquarters in Pittsburgh, but it would become a wholly owned subsidiary of Nippon Steel under the terms of the sale. However, President Biden’s opposition to the sale is seen as a significant step in protecting American steelworkers and communities.
In addition to the opposition to the sale, a bipartisan group in the Senate has proposed the Stop Mexico’s Steel Surge Act. This act aims to reinstate Section 232 tariffs on imports of steel from Mexico, addressing concerns about a surge in Mexican steel imports that threaten jobs in the U.S. steel industry. U.S. Sen. Bob Casey supports this legislation, emphasizing the need for foreign governments to play by the rules of fair trade.
Furthermore, Sen. Casey, along with Sen. Tammy Baldwin and the USW, is pushing the Biden administration to investigate and impose tariffs on the Chinese Communist Party’s shipbuilding industry. The United States has lost industrial shipbuilding capacity over the past 20 years due to China’s aggressive subsidization of their shipbuilding. This investigation aims to protect American shipbuilding and maintain a competitive edge in the industry.
President Biden’s opposition to the sale of U.S. Steel reflects his commitment to supporting American steelworkers and communities. By prioritizing national security and the interests of American workers, he seeks to ensure that vital industries like steel remain domestically owned and operated. The bipartisan efforts in the Senate to address concerns about steel imports from Mexico and the Chinese shipbuilding industry further reinforce the administration’s commitment to protecting American jobs and industries.
