Kamala Harris steps in to block foreign takeover of U.S. Steel! Is America’s industry at risk?

American Vice President Kamala Harris is expected to oppose the proposed takeover of United States Steel Corporation by Nippon Steel Corporation, Japan’s largest steelmaker, during a joint campaign appearance in Pittsburgh, Pennsylvania, with President Joe Biden. This development adds significant political weight to the ongoing debate over the potential foreign acquisition of a major American steel manufacturer, emphasizing the importance of maintaining U.S. Steel’s domestic ownership.

Key Points of the Opposition

Harris’s anticipated statement will be the first time she has directly addressed the proposed sale, aligning her stance with the Biden administration’s earlier opposition. A campaign official indicated that Harris would highlight her “commitment to always have the backs of American steelworkers” and stress the necessity of keeping U.S. Steel under American ownership and control. The administration’s concern centers around preserving American jobs, national security interests, and the strategic importance of the domestic steel industry.

President Joe Biden has already voiced his disapproval of the deal, emphasizing that the United States must sustain “strong American steel companies powered by American steelworkers.” Biden’s comments were made during a visit to Pittsburgh, known as “Steel City,” where he addressed the United Steelworkers union and called for increased tariffs to protect American manufacturing from foreign competition.

The Broader Political Context

The planned opposition by Harris and Biden comes as part of a broader strategy to appeal to American workers and unions ahead of the 2024 elections. Both leaders are keen to showcase their support for American labor and manufacturing, especially in key swing states like Pennsylvania, which play a crucial role in presidential elections. Biden’s and Harris’s appearance together at a Labor Day parade in Pittsburgh marks their first joint campaign event since Biden announced his reelection bid.

The proposed $14 billion takeover bid by Nippon Steel requires approval from multiple U.S. government bodies, including the Department of Justice, which handles antitrust laws, and the Committee on Foreign Investment in the United States (CFIUS). This powerful committee, composed of members of Biden’s Cabinet, evaluates the national security implications of foreign takeovers. The committee’s decision-making process could determine the future of this potential acquisition.

Implications for U.S. Steel and Nippon Steel

Should the takeover bid proceed, Nippon Steel has committed to retaining U.S. Steel’s name and keeping its headquarters in Pittsburgh. The Japanese company has also pledged to maintain and potentially expand U.S. Steel’s operations, in part to gain favor with American labor unions and policymakers. However, the proposed deal has faced significant pushback from both political and labor leaders who argue that foreign ownership could lead to job losses and a weakening of U.S. industrial capabilities.

Representatives from U.S. Steel and Nippon Steel have not commented on Harris’s position or whether she has been briefed on the specifics of the deal. It remains uncertain whether the Biden administration will take further steps to block the acquisition on national security grounds or rely on CFIUS’s independent review process.

Conclusion

The opposition from Kamala Harris and Joe Biden represents a significant obstacle for Nippon Steel’s plans to acquire U.S. Steel. This political stance reflects broader concerns about foreign ownership in strategically important industries like steel manufacturing. With both leaders voicing strong support for American workers, the controversy over the U.S. Steel takeover is likely to continue, potentially influencing both the economic landscape and the upcoming 2024 presidential elections.