Harris, Trump, and Biden Oppose US Steel’s Sale as Company Plays Hardball

US Steel has sent a stern warning to the White House concerning its proposed sale to Nippon Steel, a major Japanese firm.

The steel company has been cautious, hinting at severe job cuts in Pennsylvania, a pivotal state for the upcoming elections. Reports suggest that President Biden, along with both Vice President Kamala Harris and former President Donald Trump, are in agreement about opposing the sale.

This unusual political alignment comes as the presidential election heats up, and the fate of US Steel hangs in the balance. According to sources, Biden is set to officially announce plans to block the $14.9 billion sale. This decision stems from national security concerns highlighted by various media outlets.

The proposed acquisition is particularly contentious, as US Steel represents a significant piece of American industry. The idea of a foreign takeover has sparked debates, with candidates across the political spectrum raising alarms.

During a recent campaign event in Pennsylvania alongside Biden, Harris firmly stated that “US Steel should remain American-owned and American-operated,” emphasizing the need for domestic control of vital resources.

Trump has also voiced his opposition, promising to stop the sale “instantaneously” if he were to return to the White House. At a rally in August, he asserted, “I will stop Japan from buying United States Steel. They shouldn’t be allowed to buy it.”

As the news of Biden’s imminent rejection was unfolding, US Steel took a drastic step by announcing the potential closure of its Pittsburgh steelmaking facility and relocating its headquarters away from Pennsylvania—a state crucial to the upcoming elections—if the sale were to fall apart.

In a public statement, US Steel indicated that blocking the Nippon Steel deal would have dire consequences, warning that it would lead to a significant shift away from their blast furnace operations. This change could put thousands of union jobs at risk and impact multiple communities where US Steel has facilities.

US Steel’s CEO, David Burritt, emphasized the financial implications of the acquisition. He explained that without the acquisition, the company would lack the necessary funds to sustain jobs and keep its operations competitive.

The company highlighted that Nippon Steel had committed to investing approximately $2.7 billion into facilities in Pennsylvania and Indiana. This investment was seen as a lifeline for the steelmaker, which has faced mounting pressure in the global market.

A rally in support of the Nippon Steel deal took place in Pennsylvania, with many steelworkers urging local leaders, including Governor Josh Shapiro, to support the transaction. They expressed concerns regarding the future of their jobs and the industry as a whole.

Additionally, business groups such as the US Chamber of Commerce have called on the Biden administration to reconsider any move to block foreign investment, arguing that such actions could hurt the business environment and economic growth.

The complexities surrounding the sale are further intensified by its timing ahead of the elections, with all major candidates adopting a united front against foreign ownership of US Steel.

As developments continue, both the White House and US Steel have not yet responded to inquiries regarding the situation. A decision on the sale’s fate could greatly impact the steel industry, regional economies, and the political landscape leading into the 2024 elections.

Source: Business Insider