Joe Biden opposes plans to sell U.S. Steel to Nippon Steel
FortuneMar 14
Biden Opposes Sale of US Steel to Japanese Company
The Facts
Democratic Pres. Joe Biden on Thursday in a statement objected to the sale of US Steel to Japan's Nippon Steel, saying US Steel is "an iconic American steel company" and it's "vital" for it to remain American-owned and operated.
US Steel announced in December that it was being bought for nearly $15B by Nippon. Pennsylvania's congressional delegation voiced its opposition and Lael Brainard, Biden's top economic adviser, said the deal deserved "serious scrutiny."
The Spin
Pro-establishment narrative
Biden is an ally to the United Steelworkers and US manufacturing in general. It seems like this could be a raw deal for the blue-collar workers who make the US great, especially since Nippon's ties to China could allow the Chinese to avoid US tariffs while acquiring American steel. Japan is a great partner to the US, but this deal shouldn't be completed.
Establishment-critical narrative
Biden, the other politicians voicing their opposition, and Trump are all looking at this deal wrong and it should be allowed to go through. It's the best way to revitalize the company and tighten the US' alliance with Japan — especially if China is as great a threat as they say it is. Under Nippon ownership, US Steel can keep people employed and meet the potentially increased steel demand in the US.
Cynical narrative
Regardless of whether Biden's opposition to this deal is valid, one hopes he's not making this choice for political reasons. But considering Biden's long-held affection for the steelworkers union and the importance of Pennsylvania in the 2024 election (he narrowly won the state in 2020), it's hard not to think his unprecedented public opposition to a deal that's still under review is being driven by the ballot box.
Nerd narrative
There is a 48% chance that Joe Biden will be re-elected President of the United States in 2024, according to the Metaculus prediction community.