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Harris backs US takeover of US Steel, setback for Japanese takeover
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Harris backs US takeover of US Steel, setback for Japanese takeover



CNN

Vice President Harris plans to argue that US Steel should remain domestically owned during a campaign rally in Pittsburgh on Monday, a campaign official said, adding her voice to the dispute over possible Japanese ownership of the iconic American brand.

Harris plans to “emphasize her commitment to always standing with American steelworkers,” the official said.

It would be the first time Harris has specifically intervened in the proposed sale of US Steel to Nippon Steel, Japan’s largest steel producer.

The White House has previously opposed the controversial deal, with President Joe Biden saying it was “important that we maintain strong American steel companies that are driven by American steelworkers.” Biden outlined his position at an event in Pittsburgh, nicknamed “Steel City,” where he visited the headquarters of the United Steelworkers and called for higher tariffs to protect American manufacturing.

A week earlier, when Biden hosted Japanese Prime Minister Fumio Kishida for a state visit, Kishida was asked by a reporter whether he saw U.S. politics influencing the $14 billion takeover bid. Kishida said, “Japan believes the U.S. government is implementing appropriate procedures based on law” to evaluate the deal.

When Biden was asked the same question, he simply said he stands with both American workers and America’s allies abroad, without elaborating on his further commitment.

Closing the deal would require approval from both the Justice Department, which enforces antitrust laws, and the normally low-profile but powerful Committee on Foreign Investment in the United States, which reviews acquisitions on national security grounds. That committee is made up of members of Biden’s Cabinet, including the secretaries of the Treasury, Commerce, Defense, State Department, Homeland Security and the attorney general.

It is not yet clear to what extent Biden or Harris, in their official capacities, will block the deal on national security grounds in the Treasury Department-led investigation.

Representatives of US Steel and Nippon Steel declined to comment on whether the companies had informed Vice President Harris of the deal.

Under the current terms of the deal, U.S. Steel would retain its name and headquarters in Pittsburgh. Nippon has also pledged $1.3 billion to renovate two aging plants in Pennsylvania and Indiana.