President Biden’s Strong Stance on US Steel: American Ownership and Operation
On Thursday, President Joe Biden made it clear that he believes it is essential for US Steel to remain an American-owned and operated company. This statement comes as a significant blow to the planned sale of the iconic Pittsburgh-based steel firm to Japan’s Nippon Steel.
White House Opposition: A Controversial Deal Draws Criticism
This announcement from the White House represents the strongest opposition yet to a deal that has garnered bipartisan criticism. Biden’s stance on US Steel marks an important step in maintaining robust American steel companies powered by domestic workers.
Historic Significance and National Importance
US Steel, an American steel industry pioneer with a rich history spanning over a century, holds vital importance for the nation. The current administration emphasizes the significance of keeping this iconic company under American ownership and domestic control.
Concerns Over Nippon Steel’s Assets in China
The Biden administration’s concerns regarding the deal stem from some of Nippon Steel’s assets located in China. A source familiar with the administration’s thinking disclosed this information to News Finder but was not authorized to speak publicly about the matter.
A Thorough Review and National Security Considerations
Prior to Biden’s statement, the administration had voiced support for a comprehensive evaluation of the $14.1 billion deal. Lael Brainard, Director of the National Economic Council, issued a statement in December expressing Biden’s belief that the transaction should undergo “serious scrutiny” when it comes to its potential impact on national security and supply chains.
Market Reactions
Following reports of Biden’s intention to express opposition to the deal, US Steel shares suffered a significant decline on both Wednesday and Thursday. On Wednesday, the stock experienced its worst day since 2020, with a 13% plunge, and then retreated another 3% on Thursday.
The Political Context: Biden’s Statement Precedes CFIUS Review
It is noteworthy that Biden expressed his opposition to the deal before the national security review, which is believed to be ongoing with the Committee on Foreign Investment in the United States (CFIUS). As an inter-agency panel led by the Treasury secretary, CFIUS is responsible for reviewing deals without considering political factors.
Treasury Department Remains Silent
When approached for comment, the Treasury Department declined to provide any information regarding the situation.