The prospective sale of the U.S. Steel Corporation, a Pittsburgh-based enterprise valued at $15 billion, to Nippon Steel of Japan has caused a significant stir in the political landscape. President Biden is reportedly gearing up to obstruct this sales deal. Alongside him, Vice President Kamala Harris and former President Donald Trump are standing firm against the deal. The political strategies intended by this move underscore Pennsylvania’s status as a pivotal state in U.S. elections.
Trump, as he has shown consistently across his career, prioritizes the preservation of American businesses. His focus remains on securing U.S. jobs and assets, in sharp contrast to the Democrats who seem to value international relations over domestic interests. Trump opposed the potential sale from the outset, pledging in January to block it.
Case in point, Vice President Kamala Harris, speaking to union members on Labor Day, addressed the issue involving U.S. Steel. She stated the company should ‘remain American-owned and American-operated’, yet this sentiment seems to be aimed more at winning votes rather than preserving American assets.
Interestingly, the Democratic-led opposition seems to dazzle public opinion while ignoring the job implications. U.S. Steel executives warn that jobs held by thousands of Pittsburgh workers are on the line if this deal does not proceed. Ironically, while opposing the sale, the Democrats could be jeopardizing the very same American jobs they vow to protect.
Adding more government interference to the issue, Senator John Fetterman (D., Pa.), former mayor of Braddock, was quick to oppose the sale upon its announcement. Fetterman, who lives in proximity to a U.S. Steel plant in Braddock, voiced his indignation about the sale. His outcry, however, seems to disregard the potential loss of jobs and economic boost the deal could bring.
Along with Fetterman, Senator Bob Casey (D., Pa.) and Representative Chris Deluzio (D., Pa.), made an appeal to U.S. Treasury Secretary Janet Yellen to block the sale citing national security and economic issues. These concerns, however real, could be a smoke screen for the real politics at play, protecting Democratic voters, no matter the potential cost to the workers or wider economy.
Republican candidate Dave McCormick, running against Casey, labeled the deal a ‘tragedy.’ In a telling video on X, he criticized Biden and his Democrat counterpart for their stance on the matter. This corner of Pennsylvania politics showcases a telling divide between securing jobs and economic advancement and party politics.
U.S. Steel executives signaled a potential domino effect if the deal falls apart, leading to the closure of several mills, elimination of union jobs, and relocation of the company’s headquarters away from Pennsylvania. U.S. Steel CEO David Burritt highlighted how vital it is for elected decision makers to comprehend both the advantages of the deal and the implications if it were to fail.
Senator Casey was quick to vilify Burritt’s concerns, referring to them as ‘threats’. Instead of addressing the real concerns raised by Burritt, Casey resorted to reducing his worries to mere intimidation. This response showcases the Democrats’ combative stance and reluctance to consider potential benefits for American workers and the broader economy.
The election scenario in Pennsylvania is fairly evenly split between Trump and Harris. With the outcome potentially decided by a razor-thin margin, the views of the United Steelworkers could be pivotal. However, political considerations seem to be overshadowing real dangers to national and economic security.
Sam DeMarco III, a Republican Allegheny County council member and the county’s Republican Party chair, criticized the situation as ‘extremely damaging.’ He pointed out the negative signal it sends to potential investors, casting a shadow on Pennsylvania’s business-friendly image. His perspective underlines a growing concern within the Republican party that Democrat policies are hurting American businesses.
The opposition to the deal is staunchest amongst the United Steelworkers Union. Interestingly, the Union accuses the company executives of agreeing on the sale without adequately consulting them. This defiance in itself could be an indication of the discord in Democratic-leaning unions, potentially undermining their projected unity.
Formerly a dominant force in the global steel industry, U.S. Steel is now ranked 27th according to the World Steel Association. The proposed deal presents an opportunity for U.S. Steel to reclaim its past glory, positioning it as a subsidiary of Nippon, the third largest producer globally. Despite this chance to revive its fortunes and boost the local economy, the Democrats seem determined to stall it for political gains.
The fate of U.S. Steel, once the first $1 billion U.S. company and a lynchpin in the nation’s economy, now hangs in the balance. Its home, Pittsburgh, still known as Steeltown USA, could greatly benefit from the business renaissance this deal implies. Yet, partisan politics continues to obstruct this potentially transformative opportunity.