US President Joe Biden has blocked a proposed takeover of US Steel by Japan’s Nippon Steel, citing national security concerns. However, the move may not necessarily benefit rank-and-file workers at US Steel, which employs around 4,000 people in Pennsylvania.
The deal was met with criticism from some experts, who argue that the concerns were unfounded and would have provided much-needed investment to the struggling industry. Jason Furman, a former chair of the Council of Economic Advisers, called Biden’s move “pathetic and craven” and accused him of betraying allies while abusing the law.
Industry observers note that US Steel is facing financial difficulties and has been shedding jobs in recent years. The company warned that without a deal, it would be forced to close operations in Pennsylvania, which could have a significant impact on the local economy.
It remains unclear how this decision will affect workers at US Steel or other affected employees. However, experts warn that it may lead to job losses and hurt workers beyond the steel industry if foreign investors become risk-averse.
President-elect Donald Trump’s stance on the issue is also of interest, as he was opposed to the deal and has an evolving relationship with organized labor. The decision sets a precedent for future foreign investment in US companies, potentially deterring low-risk foreign investors and harming workers who depend on these deals for their livelihoods.
Source: https://www.axios.com/2025/01/07/nippon-steel-block-biden-unions