President Joe Biden has expressed opposition to the proposed sale of US Steel to Japan’s Nippon Steel, citing the importance of maintaining strong American steel companies and supporting domestic steelworkers.
Biden’s intervention comes amid concerns about the potential national security implications and the impact on American manufacturing.
The planned $14.1 billion acquisition has been under federal review since it was announced in December, with both Biden and lawmakers from both parties expressing reservations about the sale.
US Steel Company (Credits: Local News 8)
While Biden did not explicitly state that he would block the deal, his statement reflects his commitment to preserving American steel companies that are domestically owned and operated.
The proposed sale has become a focal point in US politics, particularly as the country approaches the November presidential election. US Steel’s headquarters in Pittsburgh, Pennsylvania, a key battleground state, adds to the significance of the issue as Biden seeks to maintain support in crucial swing states.
Former President Donald Trump has also weighed in on the matter, stating that he would block the deal if he were to win a second term in the White House. Like Biden, Trump views the sale as potentially detrimental to American manufacturing and national security interests.
Biden (Credits: CNN)
Unions have strongly opposed the proposed acquisition, expressing concerns about job security and the integrity of existing contracts between US Steel and the United Steelworkers union.
The transaction has drawn bipartisan criticism on Capitol Hill, with lawmakers questioning the long-term implications for domestic steel production and national security.
The firms involved in the deal have defended the acquisition, emphasizing the benefits of the partnership and the close alliance between Japan and the United States.
They have called for a fair and thorough evaluation of the transaction, expressing confidence that it will ultimately receive approval.
As the Committee on Foreign Investment in the United States (CFIUS) continues to evaluate the proposed sale, the issue remains a point of contention in US politics, reflecting broader debates about the future of American manufacturing and economic security.
