US Lawmakers Urge Biden to Block Nippon Steel Acquisition of US Steel

A group of US lawmakers supporting unions is pressing President Joe Biden to reject the proposed acquisition of United States Steel Corp by Nippon Steel Corp. They argue this deal could threaten the future of American steel manufacturing.

The Congressional Labor Caucus addressed a letter to the President, outlining their concerns and increasing pressure on Biden to halt the deal, initially announced one year ago. The letter, dated Tuesday, was signed by 29 lawmakers, including Ohio Representative Marcy Kaptur and Pennsylvania Democrat Chris Deluzio. It reflects extensive worries within the labor movement, historically aligned with the Democratic Party.

According to sources, Biden is likely to block the $14.1 billion sale on national security grounds when it comes back to him later this month. The Committee on Foreign Investment in the United States has been reviewing the deal throughout the year and must provide its decision to Biden by December 22 or 23.

Biden has shown public support for labor movements and sought endorsements from union leaders and members. The lawmakers criticized Nippon Steel for failing to provide legally binding commitments, despite its verbal promises to invest billions in US steel and retain jobs domestically. They urged Biden to reject the merger by the end of the Committee’s third review period, concluding on December 22, 2024.

However, not all of Biden’s allies agree. Three Black House Democrats—Maxine Waters, Jim Clyburn, and Bennie Thompson—expressed support for the deal on December 12. They argue that Nippon Steel’s investment could boost crucial manufacturing sectors for job creation and economic stability, particularly for Black Americans.

Clyburn’s endorsement was pivotal in revitalizing Biden's 2020 campaign that led to his presidency. The lawmakers called on the Biden administration to collaborate with all stakeholders for the acquisition's successful completion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.