U.S. Steel And Nippon Sue Biden Administration For Blocking Merger
ForbesDEC 28 2024
Nippon Steel, US Steel File Lawsuits Over Biden Decision
Above: Nippon Steel Corporation in Tokyo on Jan. 6, 2025. Image copyright: KAZUHIRO NOGI/Contributor/AFP via Getty Images
The Spin
Establishment-critical narrative
Blocking this deal makes the future of the steel industry in Pennsylvania uncertain, and would be against the best interests of US workers. Nippon Steel had promised, along with its significant investment, that it would not have any layoffs for 10 years — a commitment that workers at these American plants are unlikely to get from anywhere else. In addition to protecting union jobs through guaranteed employment, this investment would also strengthen American steel production by providing much-needed modernization to aging facilities. The Biden administration's decision to block this acquisition lacks a strong legal basis and is politically motivated.
Pro-establishment narrative
Maintaining American ownership of strategic industries like steel production is essential for national security and supply chain resilience. Allowing a foreign company like Nippon Steel to take control of critical domestic steel production would be a threat to American interests. This acquisition would have very likely undermined the domestic steel industry while bolstering the industry abroad — undercutting American trade and critical domestic infrastructure needs. There are other ways besides this deal to ensure the success of US Steel.