Biden promises to keep US Steel a 'totally American company' amid review of Japanese takeover plan

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PITTSBURGH (AP) — President Joe Biden is promising to block the acquisition of U.S. Steel by a Japan company, saying it “should remain a totally American company. American-owned, American operated.

PITTSBURGH — President Joe Biden is promising to block the acquisition of U.S. Steel by a Japan company, saying it “should remain a totally American company. American-owned, American operated.”

The move reflects the intersection of Biden’s international trade policy with his reelection effort. The White House insists the move is more about shielding American manufacturing from unfair trade practices overseas than firing up a union audience.The Biden administration also promised to pursue antidumping investigations against countries and importers that try to saturate existing markets with Chinese steel.

Japan's Nippon Steel has proposed acquiring the company, and Biden last month came out against the move, saying “it is vital for it to remain an American steel company that is domestically owned and operated.” The announcement on steel tariffs was cheered by the U.S. steelmakers. Kevin Dempsey, president of the American Iron and Steel Institute, accused China of disrupting “world markets both by subsidizing the production of steel and other products and by dumping those products in the U.S. and other markets.”The U.S. imported roughly $6.1 billion in steel products in the 12 months ending in February 2023, but just 3% of those imports came from China, according to Census Bureau figures.

”China’s policy-driven overcapacity poses a serious risk to the future of the American steel and aluminum industry," Brainard said. Referencing China's economic downturn, she added that Beijing “cannot export its way to recovery." The former president imposed broader tariffs on Chinese goods during his administration and has threatened to increase levies on Chinese goods unless they trade on his preferred terms as he campaigns for a second term. An outside analysis by the consultancy Oxford Economics has suggested that putting in place the tariffs Trump has proposed could hurt the overall U.S. economy.

 

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