Even the Trump administration under former President Donald Trump recently blessed a major merger between Nippon Steel and U.S. Steel. This decision reverses a nationwide block that President Joe Biden implemented. The bipartisan administration-by-administration opposition was a proposed $14.9 billion acquisition that had been successfully blocked by Biden on national security grounds.
In January, President Biden expressed apprehensions regarding the potential impact of the acquisition on critical supply chains for the United States. He cautioned that should Nippon Steel acquire U.S. Steel, it would endanger the nation’s economic security. Shockingly, this move could further endanger our national security as well.
Trump supported the merger. In particular, he highlighted its potential to strengthen the American workforce and economy.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 billion dollars to the U.S. Economy,” Trump stated.
The merger is expected to bring significant investments and job opportunities within the steel industry, which has been facing challenges in recent years. This partnership is intended to help both companies gain a competitive advantage, while bringing increased security to the companies’ supply chains.
In fact, industry analysts have raised alarm bells, arguing that the merger would be terrible for the economy. It will likely raise alarm bells about foreign acquisition of our critical infrastructure. The national security vapors National security continues to be a hotly contested issue in policy debates over foreign acquisitions in sensitive industries.