Senator Fetterman opposes U.S. Steel being bought out by a Japanese company…
The acquisition of @U_S_Steel by a foreign company is wrong for workers and wrong for Pennsylvania. I’m gonna do everything I can to block it. pic.twitter.com/9EqohwRhRJ
— Senator John Fetterman (@SenFettermanPA) December 18, 2023
In a move signaling growing concern over potential national security and supply chain issues, the Biden administration has called for a thorough review of Japanese company Nippon Steel’s proposed $14.9 billion acquisition of American giant U.S. Steel. White House national economic adviser Lael Brainard expressed the administration’s apprehensions in a statement on Thursday, emphasizing the historical significance of U.S. Steel and its pivotal role in national security.
What is the specific national security concern that people have with Nippon Steel buying US Steel? What is the left tail scenario where this could create bad external outcomes?- Joe Weisenthal
President Joe Biden, acknowledging the importance of welcoming foreign investments in the U.S., particularly those creating jobs for American workers, also underscored the need for careful examination when it comes to a foreign entity acquiring an iconic American company. Brainard conveyed the President’s commitment to scrutinize the potential impact on national security and supply chain reliability, with a willingness to take appropriate action based on the findings of any investigation.
This statement follows Nippon Steel’s announcement of its intent to acquire U.S. Steel for $14.9 billion, a move that drew immediate concern from lawmakers across party lines. The deal, which is expected to close in the second or third quarter of 2024, would see U.S. Steel retaining its name and Pittsburgh headquarters while becoming a subsidiary of Nippon Steel.
A Biden administration official said the $14.1 billion deal to acquire U.S. Steel by Japan’s Nippon Steel deserved “serious scrutiny” over its potential impact on national security and supply chains https://t.co/75bCJDqwPB https://t.co/75bCJDqwPB
— The Wall Street Journal (@WSJ) December 22, 2023
Lawmakers, including both Republicans and Democrats, have expressed apprehension about the acquisition’s potential threat to national security and its implications for domestic steel production. Senators J.D. Vance and Josh Hawley, in a letter to Treasury Secretary Janet Yellen, who chairs the Committee on Foreign Investment in the United States (CFIUS), labeled the purchase as a “turning point for an icon of American industry” with “dire implications” for the nation’s industrial base.
– Whatfinger SponsorDemocratic Senator Joe Manchin characterized the deal as a “major blow to the American steel industry,” emphasizing the industry’s role in making the U.S. a global superpower. Manchin highlighted the need to prevent further erosion of American ownership, particularly as domestic manufacturing faces increasing competition from unfair trade practices. He expressed concern about the dependence on foreign supply chains and the impact on a level playing field for American businesses.
President Joe Biden believes "serious scrutiny" is warranted for the planned acquisition of U.S. Steel by Japan's Nippon Steel, the White House said after days of silence on a transaction that has drawn alarm from the steelworkers union. https://t.co/0tOr9T71hG
— NEWSMAX (@NEWSMAX) December 22, 2023
Senator John Fetterman pledged to thwart the deal, echoing concerns about its potential consequences. The United Steelworkers International, the primary union at the third-largest U.S. steel company, also opposed the transaction.
Brainard, reiterating President Biden’s commitment to supporting union workers, emphasized the administration’s dedication to ensuring fair competition for steelworkers. She outlined the administration’s approach, combining policies that combat unfair trade practices with the recognition that a robust domestic steel industry is essential for the economy and national security.
In response to the mounting concerns, other lawmakers have called for a comprehensive review of the transaction by CFIUS. Brainard acknowledged that the sale appears to align with the type of transaction that CFIUS is empowered to investigate carefully, highlighting the administration’s commitment to a thorough examination.
US Steel — once the largest company on earth — is being sold for scrap to Nippon Steel. Thanks to a federal regulatory and trade agenda that is wiping out what remains of honest work.
Back in the 80's this would have been the story of the year. Today it's just another random… pic.twitter.com/69GgIFRbM9
— Peter St Onge, Ph.D. (@profstonge) December 20, 2023
As the Biden administration gears up to scrutinize the proposed acquisition, the outcome will not only impact the future of the U.S. steel industry but also set a precedent for evaluating foreign investments with potential national security implications. The delicate balance between fostering international economic relations and safeguarding critical domestic industries remains a key challenge for policymakers in the evolving global landscape.
Major Points Discussed:
- President Biden and economic adviser Lael Brainard express reservations about Japanese company Nippon Steel’s $14.9 billion acquisition of U.S. Steel, citing potential national security and supply chain risks.
- U.S. Steel, a key player in America’s arsenal during WWII, is deemed vital to national security. The administration welcomes foreign investment but insists on scrutinizing the purchase of this iconic American company by a foreign entity, even from a close ally.
- Senators from both parties, including J.D. Vance, Josh Hawley, Joe Manchin, and John Fetterman, voice apprehensions over the acquisition. They fear dire implications for America’s industrial base, a major blow to the steel industry, and a threat to national security.
- Nippon Steel’s planned acquisition involves U.S. Steel retaining its name and Pittsburgh headquarters but becoming a subsidiary. The deal, set to close in 2024, faces opposition from lawmakers and the United Steelworkers International union.
- Lawmakers urge the Committee on Foreign Investment in the United States (CFIUS) to conduct a thorough review. The Biden administration, committed to supporting union workers and fair competition, pledges to carefully investigate the transaction, considering its potential impact on national security and the domestic steel industry.
Comments – Threads – Links
- I’m with Fetterman on this one Don’t allow the sale of US Steel to a foreign country That is a national security risk We should’ve already learned our lesson when we outsourced nearly all our antibiotic production to Communist China – DC Draino
- Careful examination is crucial for safeguarding our national interests and economic stability- Mai Xuan Hieu
- Somebody needs to tell Marco Rubio, Josh Hawley, John Fetterman, Sherrod Brown, and JD Vance that this is the year 2023, not 1941. Nippon Steel is a business, and acquiring US Steel does not present national security issues. Foreign investment is a good thing, not a bad thing- Ken Gardner
- 1. National security concerns about U.S. needing steel production capacity it controls in the event of a major conflict. 2. Hear rumbles about quality concerns since US steel has traditionally been better for reasons. Don’t know as much about this or if it is a legitimate concern- Dr. Holly A. Bell
- You should be 1000x more concerned with Chinese control of the primary news source for young people in the US than the Japanese owning some steel mills on American soil- John Arnold
