Part of U.S. Steel’s Edgar Thompson plant is seen in Braddock on Friday after President Joe Biden blocked the sale of U.S. Steel to Japan’s Nippon Steel Corp.
The intersection of politics and national security likely played a role in President Biden’s decision to reject the proposed sale of U.S. Steel, according to experts.
The White House announcement Friday morning to halt the proposed $15 billion deal to transfer ownership of the iconic Pittsburgh-based steel giant to Nippon Steel Corp. of Japan ends a year-long debate that became a touchstone election issue in Pennsylvania.
Duquesne University political science professor Lew Irwin said it’s likely the political fallout of Biden’s decision will continue into the incoming Trump administration.
“There were clearly political implications to this,” Irwin said while also suggesting national security concerns were also likely a key component in the decision-making process to prohibit the proposed sale.
“There is no such thing as a non-political decision that comes out of the White House or Congress.”
Federal law required Biden to make a decision on the proposed sale 15 days after the Committee of Foreign Investment in the United States announced Dec. 23 that it failed to make a formal recommendation regarding the future of the deal. T
he committee operates as part of the U.S. Treasury Department and includes key U.S. Cabinet members such as the heads of the Departments of Defense, State, Justice, Homeland Security, among others.
The committee split on recommending approval of the sale, which then required the president to make a final ruling.
Biden previously announced his opposition to the deal.
University of Pittsburgh at Greensburg associate political science professor Paul Adams said the national security concerns over the sale of U.S. Steel appears to have trumped politics, but said the fallout from Biden’s decision could have a lasting impact, especially in Pennsylvania where union support for Democrats has become shakier in recent years.
“The political ramifications from this will not so much impact Biden, but it does create confidence issues for organized labor. If the Trump administration ultimately rejects this deal too there could be political fallout for both parties,” Adams said.
During the presidential campaign last fall Trump also opposed the proposed sale.
It was unclear Friday if he had the authority to overturn Biden’s decision, which directed the U.S. Justice Department to oversee the abandonment of the proposed sale.
Trump has options, Irwin said.
“I won’t be surprised if this gets revisited, but not under these terms. When (President-elect) Trump takes office he will get a steady stream of recommendations and advice and this is something that could be renegotiated,” Irwin said.
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