Pres. Biden Blocks Sale Of U.S. Steel

President Joe Biden delivering remarks on the South Lawn of the White House in July 2022. Credit: Katie Ricks

President Joe Biden on Friday blocked the proposed $14.9 billion acquisition of Pittsburgh-based U.S. Steel by Japan’s Nippon Steel due to national security concerns.

The decision, which came after a review from the Committee on Foreign Investment in the United States, uses the president’s authority under the Defense Production Act of 1950.

U.S. Steel operates several facilities in Pennsylvania, including a finishing plant in Falls Township. It was once one of the county’s largest employers.

The halted deal, which has been under scrutiny since its announcement last December, faced widespread opposition, including from Democrats, Republicans, and the steel worker union.

The remaining U.S. Steel operations at the site. Credit: Tom Sofield/LevittownNow.com

U.S. senators Bob Casey and John Fetterman, both Democrats from Pennsylvania, voiced disapproval of the move that would end American ownership of the iconic steelmaker, a cornerstone of the Pennsylvania economy for over a century.

“It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company. U.S. Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world,” Biden said in a statement.

Despite assurances from Nippon Steel to invest nearly $3 billion and retain unionized jobs, opposition remained firm.

The United Steelworkers union also expressed concerns about the deal’s implications for its members.

Gov. Josh Shapiro, while focusing on job retention in the state, did not explicitly oppose or support the acquisition when asked last month but he pointed to the importance of maintaining employment stability.

Gov. Josh Shapiro addressing an audience.
Credit: Tom Sofield/LevittownNow.com

Shapiro, in a statement Friday morning, said he “expects U.S. Steel to uphold their commitments” and not threaten jobs as they “work collaboratively to ensure the future of American steelmaking takes place right here in our Commonwealth.”

If there are future potential buyers interested in the company, Shapiro said he expect them to “demonstrate the strong commitments to capital investment and protecting and growing Pennsylvania jobs that Nippon Steel placed on the table during my continued dialogue with their leadership – and I will continue to engage with all interested parties directly as I continue to fight for Pennsylvania.”

Lt. Gov. Austin Davis, a Democrat from the Pittsburgh area, called for finding a “longterm plan for keeping steel production” in the Keystone State.

Lt. Gov. Austin Davis speaking at an event in Bristol Township on February 3, 2023.
Credit: Tom Sofield/LevittownNow.com

U.S. Steel has seen a dramatic reduction in its workforce over the decades as the company weakened. The company’s Fairless Works complex, once a major employer with over 5,000 workers in Bucks County, reflects the industry’s shrinking domestic footprint.

Biden said he blocked the deal because steel is vital to America’s national security and economy and Nippon Steel would place U.S. Steel under the control of a foreign company. Japan is a close U.S. ally and a major foreign investor in industry.

President-elect Donald Trump, who takes office on Jan. 20, expressed his opposition last month to the deal on social media. He pledged to restore U.S. Steel to former glory and improve its performance.