President Joe Biden announced early Friday he will block the sale of U.S. Steel to the Japanese company Nippon Steel, in one of the last acts of his presidency.
Biden had said that U.S. Steel should remain a domestically owned and operated company, so the order was not a surprise. The White House in December called for “serious scrutiny” of the $14.1 billion deal, which was under review by the Committee on Foreign Investment in the United States, an executive branch body.
“We need major U.S. companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a Friday statement. “As a committee of national security and trade experts across the executive branch determined, this acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.
“So, that is why I am taking action to block this deal. It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company. U.S. Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world,” he said.
The sale was opposed by the United Steelworkers International union, a powerful labor group that had continually urged Biden, who saw union workers as a key part of his political coalition, to keep U.S. Steel domestically owned. The union renewed that request in a Wednesday social media post.
In a Friday statement, USW President David McCall thanked Biden and said the union members had “no doubt that it’s the right move for our members and our national security.”
“We’re grateful for President Biden’s willingness to take bold action to maintain a strong domestic steel industry and for his lifelong commitment to American workers,” McCall said. “Moving forward, we’re confident that with responsible management, U.S. Steel will continue to support good jobs, healthy communities and robust national and economic security well into the future.”
Biden issued the order under the Defense Production Act, which allows the president to intervene in private industrial matters if national security is threatened. In his statement, he argued that retaining a strong steel industry was essential for national security.
Pennsylvania leaders weigh in
Members of Pennsylvania’s Congressional delegation including U.S. Sen. John Fetterman, former U.S. Sen. Bob Casey and U.S. Rep. Chris Deluzio (D-17th District) had all expressed opposition to the deal since it was first announced.
Gov. Josh Shapiro, who said in July he was “not happy” with the proposed sale, said Friday that his priority throughout the process was protecting Pennsylvania workers.
“As next steps play out and as I have expressed directly to U.S. Steel leadership, I expect U.S. Steel to uphold their commitments to Western Pennsylvania, refrain from threatening the jobs and livelihoods of the Pennsylvanians who work at the Mon Valley Works and at U.S. Steel HQ and their families, and work collaboratively to ensure the future of American steelmaking takes place right here in our Commonwealth,” Shapiro said in a statement
“I also expect any other potential buyers to demonstrate the strong commitments to capital investment and protecting and growing Pennsylvania jobs that Nippon Steel placed on the table during my continued dialogue with their leadership – and I will continue to engage with all interested parties directly as I continue to fight for Pennsylvania,” he added.
This story was first published by Pennsylvania Capital-Star. Read more of their coverage here.
