Editorial: Should U.S. Steel deal be open to political threats?
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Some things are too complicated for a campaign promise. That never stops anyone from making them, though.
On Wednesday, former president and Republican front-runner Donald Trump said that, if elected, he would block the sale of U.S. Steel to Nippon Steel Corp., a leading steel producer based in Japan.
The $14 billion deal was announced in December to mixed reactions.
“I would block it instantaneously,” Trump said at a Teamsters meeting in Washington, D.C., per Bloomberg and Politico.
He is not the only one to express reservations or outright opposition. In addition to President Joe Biden’s statements about “serious scrutiny” for the deal, many legislators have gone on record.
“I am committed to doing anything I can do, using my platform and my position, to block this foreign sale,” said U.S. Sen. John Fetterman, D-Braddock, who lives across the street from U.S. Steel’s Edgar Thomson Works.
“I’m concerned about what this means for the Steelworkers and the good union jobs that have supported Pennsylvania families for generations, for the long-term investment in the commonwealth, and for American industrial leadership,” said U.S. Sen. Bob Casey, D-Scranton.
U.S. Rep. Chris Deluzio, D-Aspinwall, also expressed concern. Gov. Josh Shapiro has walked a tightrope, pledging support for the workers and a continued push for answers about the sale.
Trump and Fetterman, a duo that seldom see eye to eye, are the two who have taken the hardest stance.
U.S. Steel has said it is open to review of the plans, which it claims include keeping Pittsburgh as headquarters and honoring union contracts. The United Steelworkers have expressed fears — and that’s understandable amid a deal that has been largely news releases and promises so far.
However, a president doesn’t have unilateral authority to kill a merger, and a senator definitely doesn’t hold that power. What they can do is bring the weight of their offices to bear through things like oversight agencies, the courts and legislative committee hearings.
In 2023, the Biden administration proposed changes within the Justice Department and Federal Trade Commission regarding mergers and competition. There could be legitimate national security concerns regarding ownership of a critical industry leader like U.S. Steel by a foreign corporation.
But is flat opposition and a commitment to killing the deal best?
It’s a dangerous area for playing politics. Say the sale becomes too contentious for Nippon and the Japanese company walks away. It could damage U.S. Steel’s stock price, leaving it open to purchase by another company that might not keep doors open or jobs in Pittsburgh.
There is still too much to learn about Nippon’s plans to promise the death penalty for the sale — especially when so many people in Southwestern Pennsylvania depend on U.S. Steel paychecks.