Biden wants to call American ownership of U

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President Biden on Thursday will express opposition to Nippon Steel’s proposed acquisition of U.S. Steel, an extraordinary move that comes as a federal panel continues its review of the transaction for any potential effect on national security.
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ArrowRight “It is important that we maintain strong American steel companies powered by American steel workers,” the president’s statement will say.
“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 president’s intervention in the transpacific deal, which threatens to upend relations with one of the United States’ closest allies, comes less than a month before Japanese Prime Minister Fumio Kishida is scheduled to arrive in Washington for a planned state visit.
AdvertisementShares of U.S. Steel plunged almost 13 percent Wednesday on the reports.
Nippon Steel rose 2 percent.
Word of the president’s plans follows a meeting last week between Nippon Steel executives and representatives of the United Steelworkers union, which has publicly opposed the $14.9 billion deal.
Prominent lawmakers in both parties also have objected to the purchase by a foreign buyer of a once-iconic U.S. industrial power.
In January, former president Donald Trump, Biden’s likely opponent in November, said of the deal that he would “block it instantaneously” if returned to the White House.
Administration officials have informed the Japanese government of the president’s plans, explaining the statement in terms of his need to retain political support in Pennsylvania in the November election, said one industry source, who described the matter on the condition of anonymity to comment on internal deliberations.
AdvertisementBiden won Pennsylvania in 2020, beating Trump by more than 80,000 votes in the key swing state.
Support from organized labor, especially the United Steelworkers, was critical in winning the Keystone state for Biden, who often boasts of being “the most pro-union president in American history.”The steelworkers union has returned the affection.
This month, USW President David McCall praised the president’s efforts to promote domestic manufacturing and infrastructure.
“President Biden delivered win after win for working people during his first three years in office, and USW members look forward to working with him as he continues his fight to grow the middle class and an economy for all,” McCall said in a statement.
In December, Lael Brainard, director of the National Economic Council, said Nippon Steel’s bid for the American company deserved “serious scrutiny.”AdvertisementAny presidential statement before CFIUS completes its assessment of the deal’s national security implications would be unusual.
Share this article Share“I am unaware of any president preemptively signaling he may oppose an acquisition that is undergoing national security review, much less an acquisition by a company from a treaty partner that we are obligated to defend with U.S. troops,” said Dan Price, managing director at Rock Creek Global Advisors, who was the top White House official on international trade and investment during the George W. Bush administration.
The Treasury-led CFIUS review, which includes representatives of the Defense Department and intelligence community, is intended to be “apolitical,” said Nancy McLernon, chief executive of the Global Business Alliance, which represents foreign-owned companies in the United States.
Advertisement“Japan is a strategic ally and the largest foreign investor in the United States, directly employing nearly 1 million American workers.
Facts I hope the administration keeps in mind when preparing for next month’s state visit,” she said in an email.
Controversy over the Nippon Steel proposal also illustrates tension at the heart of Biden’s international economic policy.
In August, the White House celebrated an increase in foreign investment in U.S. factories.
But Nippon Steel’s intention to do the same has stirred presidential unease largely because of domestic political factors.
The steel industry has traditionally been one of the most protected U.S. markets.
In 2018, Trump, then president, imposed 25 percent tariffs on imported steel.
Biden later agreed with the European Union to allow imports of European steel up to a certain level before the tariffs would apply.
AdvertisementU.S. Steel’s name holds a special place in the nation’s economic history.
The company was the nation’s first billion-dollar corporation after its founding in 1901 through a merger of steel companies led by legendary business executives, including John D. Rockefeller.
The output of its blast furnaces formed the tanks, planes and aircraft carriers that helped win World War II, as well as the automobiles and appliances that con

On Thursday, President Biden will voice his disapproval of Nippon Steel’s proposed purchase of U.S. S. Steel, a remarkable step that coincides with the ongoing investigation into the transaction’s possible impact on national security by a federal panel. Every weekend, receive an email with ten of our best stories handpicked for you. ArrowRight The president’s statement will state, “It is important that we maintain strong American steel companies powered by American steel workers.”. “I really do have our steel workers’ backs,” I said. U. s. With over a century of history, Steel has established itself as a recognizable American steel brand. It is imperative that Steel continue to be owned and operated domestically. “.

Less than a month before Japanese Prime Minister Fumio Kishida is set to arrive in Washington for a scheduled state visit, the president meddles in the transpacific deal, an action that could ruin relations with one of the US’s closest allies.

promotion.

portion of U. s. Following the reports on Wednesday, steel fell by nearly 13 percent. Nippon Steel experienced a 2% increase.

The president’s intentions have come to light after a meeting last week between executives of Nippon Steel and representatives of the United Steelworkers union, which has openly opposed the $14.49 billion deal. Leading lawmakers from both parties have also voiced opposition to a foreign buyer acquiring a once-iconic U.S. S. industrial dominance.

Former president Donald Trump, who is expected to challenge Biden in November, stated in January that he would “block it instantaneously” if he were to win the presidency again.

An industry source who spoke about the matter on condition of anonymity to discuss internal discussions claimed that administration officials had informed the Japanese government of the president’s plans and explained the statement in terms of his need to retain political support in Pennsylvania in the November election.

Publicity.

In the crucial swing state of Pennsylvania in 2020, Biden defeated Trump by a margin of over 80,000 votes. Biden—who frequently claims to be “the most pro-union president in American history”—won the Keystone state with the help of organized labor, particularly the United Steelworkers. “.

The affection has been returned by the Steelworkers Union. USW President David McCall commended the president this month for his initiatives to advance homegrown infrastructure and manufacturing.

In a statement, McCall said, “President Biden delivered win after win for working people during his first three years in office, and USW members look forward to working with him as he continues his fight to grow the middle class and an economy for all.”.

The National Economic Council’s Lael Brainard stated in December that Nippon Steel’s takeover offer for the American business merited “serious scrutiny.”. “.

Promotion.

Before CFIUS has finished evaluating the deal’s potential effects on national security, the president making a statement would be unusual.

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There has never been a president, as far as I know, who has hinted that he might oppose a national security review of an acquisition, much less one involving a company that is purchasing from a treaty partner that the United States is required to defend. S. soldiers,” remarked Dan Price, managing director of Rock Creek Global Advisors and the leading White House official on foreign investment and trade during the George W. Bush lead team.

According to Nancy McLernon, CEO of the Global Business Alliance, which advocates for foreign-owned businesses in the US, the purpose of the Treasury-led CFIUS review, which also involves members of the Defense Department and intelligence community, is to be “apolitical.”.

Promotion.

Japan directly employs close to a million Americans, making it the country’s largest foreign investor and a valuable strategic ally. Facts that I hope the administration considers in advance of the state visit scheduled for next month,” she wrote in an email.

Tension at the core of Biden’s foreign economic policy is also demonstrated by the controversy surrounding the Nippon Steel proposal. The White House announced in August that foreign investment in U.S. s. manufacturers. However, due to internal political issues, Nippon Steel’s plan to follow suit has alarmed the president.

One of the most protected sectors in the U.S. historically has been the steel industry. s. markets. During his presidency in 2018, Trump levied tariffs of 25 percent on steel imports. Later, Biden and the EU reached an agreement for imports of European steel to be permitted up to a specific threshold before tariffs would be imposed.

Promoting something.

U. s. In the annals of American economic history, steel has a unique place. Established in 1901 through a merger of steel companies led by renowned business executives, such as John D. Rockefeller, the company became the first billion-dollar corporation in the country.

The products of its blast furnaces went on to build the cars and appliances that people bought during the postwar boom, as well as the tanks, planes, and aircraft carriers that contributed to the victorious outcome of World War II.

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