Biden looks to union members, opposes sale of US Steel to Japanese company

Joey Garrison, USA TODAY
·2 min read
4

WASHINGTON ― President Joe Biden came out in opposition Thursday to the planned sale of U.S. Steel to Japanese-based Nippon Steel Corporation, an extraordinary move as Biden courts the support of union workers for the 2024 presidential campaign.

“It is important that we maintain strong American steel companies powered by American steel workers," Biden said in a statement. "I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.”

The $14.9 billion sale, which would end U.S. ownership of the nation's second largest steelmaker, was announced in December and is under review by the Committee on Foreign Investment in the United States. The secretive panel reviews the effect transactions may have on national security. U.S. Steel has operated out of Pittsburgh, Pa. since 1901.

Biden announced his opposition ahead of a campaign swing to Saginaw, Michigan. The president has made strengthening America's manufacturing base a centerpiece of his economic agenda and he regularly touts himself as the "most pro-union president" in history.

A view of the US Steel Edgar Thomson Works on January 21, 2020, in North Braddock, Pennsylvania. President Joe Biden said March 14, 2024 he is against the proposed sale of US Steel to Japan's Nippon Steel, as election year considerations appeared to outweigh the risk of angering key ally Japan.
A view of the US Steel Edgar Thomson Works on January 21, 2020, in North Braddock, Pennsylvania. President Joe Biden said March 14, 2024 he is against the proposed sale of US Steel to Japan's Nippon Steel, as election year considerations appeared to outweigh the risk of angering key ally Japan.

The United Steelworkers union, which endorsed Biden in the 2020 election but has yet to endorse in the 2024 race, publicly opposes the deal and filed a grievance against the steelmaker alleging it violated terms of its union contract with the proposed sale.

Seeking to assuage concerns about job losses with the acquisition, Nippon Steel has vowed to honor all commitments between U.S. Steel and the United Steelworkers Union.

Biden has won 2024 endorsements from the AFL-CIO, the United Auto Workers and other prominent unions but is still seeking the backing of the International Brotherhood of Teamsters, whose leaders he met with Tuesday, as well as United Steelworkers.

Biden's opposition to the Nippon Steel takeover is aligned with Pennsylvania's two senators, Democrats Bob Casey and John Fetterman, who both oppose the sale.

President Joe Biden speaks during a campaign event in Milwaukee, Wisconsin, on March 13, 2024.
President Joe Biden speaks during a campaign event in Milwaukee, Wisconsin, on March 13, 2024.

"Pennsylvania workers are the American steel industry's greatest asset," Casey said in a statement. "I have long held concerns that this sale could be a bad deal for our workers, and I share President Biden's commitment to maintaining an American steel industry."

This article originally appeared on USA TODAY: US Steel sale to Japanese company: President Biden is against it

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