US Lawmakers Pressure Biden to Block Nippon Steel's Acquisition of US Steel
A group of U.S. lawmakers supporting labor unions is calling on President Joe Biden to absolutely reject Nippon Steel Corp.'s offer to acquire United States Steel Corp. They argue that this deal poses a significant threat to the future of American steel production.
The Congressional Labor Caucus has sent a letter to the President expressing their concerns, increasing pressure on Biden to halt the deal announced a year ago. The letter, dated Tuesday, was signed by 29 U.S. lawmakers, including Ohio Representative Marcy Kaptur and Pennsylvania Democrat Chris Deluzio. It underscores the widespread worries within the labor movement, which traditionally has close ties to the Democratic Party.
According to sources familiar with the matter, Biden is expected to formally block US Steel's $14.1 billion sale to Nippon Steel on national security grounds. The U.S. Committee on Foreign Investments has spent a large portion of the year reviewing the deal and must present its decision to Biden by December 22 or 23. Biden has publicly expressed his support for the labor movement and actively sought the backing of union leaders and members.
The lawmakers’ letter criticizes the public statements and verbal assurances made by Nippon Steel regarding its plans to invest billions in U.S. steel production and not move any related jobs overseas, noting the lack of any written, legally binding commitments. The letter calls on Biden to reject the merger until the end of the third 90-day review period by the Committee on Foreign Investments, which concludes on December 22, 2024.
However, not all of Biden's allies share this stance. Three prominent Congressional Black Caucus Democrats sent a letter to Biden on December 12, expressing their support for the deal. They believe Nippon Steel's commitment to invest in the steel industry is crucial for job creation and economic stability, especially for Black Americans and their communities in several manufacturing sectors.
The letter was signed by Maxine Waters, Jim Clyburn, and Bennie Thompson. Notably, Clyburn is a close ally of the President. His support was pivotal in revitalizing Biden's primary campaign prior to the 2020 election and ultimately contributed to Biden's election to the presidency. The lawmakers called on the Biden administration to work with all stakeholders to ensure the successful completion of the acquisition.