President Biden is expected to express concerns about the planned acquisition of U.S. Steel by Nippon Steel, before the visit of Japanese Prime Minister Fumio Kishida to Washington on April 10. According to sources familiar with the situation, the Committee on Foreign Investment in the United States (CFIUS) is currently reviewing the proposed takeover, while White House lawyers are drafting a statement of presidential concern.
Following a meeting between Nippon Steel officials and leaders of the United Steelworkers union, Biden’s intentions have become clear. The union has publicly opposed the .9 billion deal, and prominent politicians from both parties have also voiced their opposition to a foreign entity taking over an iconic American manufacturing company.
Former President Donald Trump, who is likely to run against Biden in the upcoming election, has stated that he would block the takeover if he were to win the presidency again. This sentiment reflects the concerns raised by Biden, as his administration has informed the Japanese government of his plans, citing the need to maintain political support in Pennsylvania, a crucial swing state.
In the 2020 election, Biden won Pennsylvania by a significant margin, with support from organized labor, including the United Steelworkers union. The union has praised Biden’s efforts to promote domestic infrastructure and manufacturing, highlighting his pro-worker initiatives.
USW President David McCall expressed confidence in Biden’s commitment to growing the middle class and the economy for all Americans. As Biden prepares to address the planned acquisition of U.S. Steel by Nippon Steel, the outcome of the CFIUS review and the president’s statement will be closely watched by stakeholders on both sides of the deal.