WASHINGTON, United States: President Joe Biden Thursday said he opposed the proposed sale of US Steel to Japan’s Nippon Steel, in a move that could annoy Washington’s close Asia-Pacific ally Tokyo.
He said he opposed the deal that would see Nippon Steel take over U.S. Steel. The proposed deal has become a political lightning rod for the presidential competition in midwestern swing states.
The statement by Biden comes less than a month before Japan’s Prime Minister Fumio Kishida is reaching the US for a state visit to the White House. Biden is due to host the Japanese PM to underscore bilateral ties.
“It is important that we maintain strong American steel companies powered by American steel workers. I told our steel workers I have their backs, and I meant it,” a statement issued by president Biden said.
“US 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 deal remains under US federal security review.
Biden’s comments come as Democrats seek to woo America’s labor unions ahead of November’s presidential election, which pits former Republican President Donald Trump against working-class voters.
US Steel is based in Pittsburgh, Pennsylvania, a key battleground state, but like in 2020, Biden will need to win again to defeat Trump.
In December, the companies announced Nippon’s plan to buy Pittsburgh-based U.S. Steel for $14.1 billion, but it quickly ran into opposition.
The White House said at the time that the deal should be carefully reviewed because of potential national security implications.
Unions are outraged by the proposed deal, even though the combined company has promised to honor a collective bargaining agreement between US Steel and the United Steelworkers (USW).
