Biden is coming out in opposition to plans to sell US Steel to a Japanese company
WASHINGTON — President Joe Biden is opposing the planned sale of US Steel to Japan’s Nippon Steel, saying in a statement to be released Thursday that the US must “preserve strong American steel companies, powered by American steelworkers.”
In a statement obtained in advance by The Associated Press, Biden added: “US Steel has been an iconic American steel company for more than a century, and it is critical that it remains a domestically owned and operated American steel company. ”
Thursday’s announcement, which comes as Biden campaigns in the Midwest, could have ripples in his race against the Republican Party’s presumptive nominee, Donald Trump. The Democratic president has made reviving American manufacturing a cornerstone of his agenda as he seeks reelection, and he has the support of the AFL-CIO and several other prominent labor unions.
Nippon Steel announced in December that it planned to acquire the Pittsburgh-based steelmaker for $14.1 billion in cash, raising concerns about what the deal could mean for union workers, supply chains and the U.S. national safety.
Shortly after the deal was announced, the White House indicated it would be investigated by the secretive Committee on Foreign Investment in the United States. The government is not officially providing updates on the CFIUS review process.
The Democratic president has a big megaphone to discuss the matter, but he is not intervening in the review process or formally blocking the deal, according to a person familiar with the deliberations who insisted on anonymity to discuss the situation.
Trump said earlier this year after a meeting with the Teamsters union that he would halt the takeover of US Steel: “I would block it. I hate it when Japan buys US Steel. I would block it immediately.”
Biden will travel Thursday to Saginaw, Michigan, where several General Motors factories once stood and where he hopes his support from union workers will resonate with voters.
The city is in a swing county that narrowly supported Trump in 2016 and then flipped to Biden in 2020, making it a crucial contest in this year’s presidential race.
Biden has a close relationship with the United Steelworkers. He gave the union “personal assurances” that he stands behind them, according to a statement from the union in February about Nippon Steel’s plans. US Steel is headquartered in Pennsylvania, another key state in this year’s elections.
The United Steelworkers issued a statement last week after meeting with Nippon Steel representatives saying they were concerned about whether the company would honor existing labor agreements and the company’s financial transparency, adding that there were “barriers” for concluding a merger.
The US considers Japan one of its closest allies and a key partner in countering China’s ambitions and influence in Asia. Biden has visited the country twice as president and will receive Japanese Prime Minister Fumio Kishida at the White House on April 10.
But Nippon Steel’s connections to China have raised concerns within the government. According to the World Steel Association, more than half of the steel produced worldwide comes from China. India is the second largest producer, followed by Japan and the United States.
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AP writer Jill Colvin contributed to this report.