Vice President Kamala Harris is set to publicly oppose the proposed acquisition of US Steel by Japan’s Nippon Steel, a move that has sparked significant controversy.
During her campaign stop in Pittsburgh on Monday, Harris will voice her concerns over the $14 billion bid by Japan’s largest steelmaker, marking her first public stance on the matter.
This acquisition has raised alarms due to the potential foreign control of a key American industry, prompting reviews by multiple US government bodies, including the Justice Department and the Committee on Foreign Investment in the United States (CFIUS).
Harris’s position underscores the administration’s commitment to protecting American workers and maintaining domestic control of vital industries.
‘Commitment to always have the backs of American steelworkers’
Harris’s visit to Pittsburgh, known as “Steel City,” is expected to focus on her unwavering support for American steelworkers.
She is likely to stress her “commitment to always have the backs of American steelworkers,” reinforcing the White House’s growing opposition to the Nippon Steel deal.
President Joe Biden had previously expressed concerns about the takeover, emphasizing the importance of strong American steel companies driven by American workers.
Harris’s remarks could further solidify the administration’s stance as the proposal undergoes scrutiny for both antitrust issues and national security risks.
Biden administration’s stance on US manufacturing
Vice President Harris’s upcoming comments are in line with President Biden’s established position on maintaining domestic control over critical industries like steel.
Biden, who has a history of advocating for higher tariffs to protect US manufacturing, has consistently emphasized the need to keep key American industries under domestic ownership to ensure economic security.
His administration’s position was reiterated during a recent meeting with Japanese Prime Minister Fumio Kishida, where the implications of the Nippon Steel deal were discussed.
Japan’s response to US concerns
During his meeting with President Biden, Japanese Prime Minister Fumio Kishida addressed concerns about US political influence over the proposed acquisition, stating that Japan believes “appropriate procedures based on law” are being followed by the US government.
While Biden expressed support for American workers and international allies, he did not detail any specific measures the administration might take to block the deal. This response highlights the delicate diplomatic balance the US aims to maintain between safeguarding domestic industries and preserving international relationships.
The proposed acquisition by Nippon Steel faces significant regulatory challenges in the US.
The Justice Department will evaluate the deal for potential antitrust violations, while CFIUS will assess national security risks.
CFIUS, which includes members of President Biden’s cabinet such as the secretaries of Treasury, Commerce, Defense, and Homeland Security, plays a crucial role in determining the outcome of foreign takeovers of American companies.
Harris’s opposition could influence these reviews, signaling strong White House resistance to the deal.
As regulatory bodies continue their review of the Nippon Steel bid, the future of US Steel remains uncertain.
Nippon Steel has pledged an additional $1.3 billion to modernize two aging mills in Pennsylvania and Indiana and has committed to retaining the US Steel name and headquarters in Pittsburgh.
However, neither US Steel nor Nippon Steel has publicly commented on any discussions with Harris regarding the matter.
Her vocal opposition could add pressure on CFIUS and the Justice Department to block the deal, potentially shaping the outcome of this contentious acquisition.
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