Biden Opposes Sale of US Steel to Japanese Company

Facts

• Democratic Pres. Joe Biden on Thursday in a statement objected to the sale of US Steel to Japan's Nippon Steel, saying US Steel is 'an iconic American steel company' and it's 'vital' for it to remain American-owned and operated.¹
• US Steel announced in December that it was being bought for nearly $15M by Nippon. Pennsylvania's congressional delegation voiced its opposition and Lael Brainard, Biden's top economic adviser, said the deal deserved 'serious scrutiny.'²
• Currently, the Committee on Foreign Investment in the US (CFIUS) is reviewing the deal, and both US Steel and Nippon said in a statement they're committed to cooperating with the 'well-established legal and regulatory CFIUS review process.'³
• Earlier this year, Republican former Pres. Donald Trump, who will be Biden's opposition in the 2024 presidential election, told the Teamsters union he would block the sale, calling the deal a 'horrible thing.'¹
• US Steel stock fell 4.3% Thursday after the president's statement became public. The stock had dropped 12.8% Wednesday in anticipation of the pending statement.⁴

Sources: ¹Associated Press, ²Pittsburgh Post, ³Forbes and ⁴MarketWatch.com.

Narratives

• Pro-establishment narrative, as provided by Fortune. Biden is an ally to the United Steelworkers and US manufacturing in general. It seems like this could be a raw deal for the blue-collar workers who make the US great, especially since Nippon's ties to China could allow the Chinese to avoid US tariffs while acquiring American steel. Japan is a great partner to the US, but this deal shouldn't be completed.
• Establishment-critical narrative, as provided by Washington Monthly. Biden, the other politicians voicing their opposition, and Trump are all looking at this deal wrong and it should be allowed to go through. It's the best way to revitalize the company and tighten the US' alliance with Japan — especially if China is as great a threat as they say it is. Under Nippon ownership, US Steel can keep people employed and meet the potentially increased steel demand in the US.
• Cynical narrative, as provided by Washington Post. Regardless of whether Biden's opposition to this deal is valid, one hopes he's not making this choice for political reasons. But considering Biden's long-held affection for the steelworkers union and the importance of Pennsylvania in the 2024 election (he narrowly won the state in 2020), it's hard not to think his unprecedented public opposition to a deal that's still under review is being driven by the ballot box.

Predictions