It is anticipated that the president would make a remark before to the visit by the prime minister of Japan. According to three persons familiar with the situation, President Biden is getting ready to make a subdued statement against Nippon Steel’s proposed takeover of U.S. Steel before Japanese Prime Minister Fumio Kishida travels to Washington on April 10 for a scheduled state visit.
The Committee on Foreign Investment in the United States (CFIUS) is currently reviewing the planned takeover, while White House lawyers are crafting the expression of presidential concern. U.S. Steel’s stock fell by over 13 percent in response to the reports. Nippon Steel saw a 2% increase.
The president’s intentions have come to light after a meeting last week between officials of Nippon Steel and leaders of the United Steelworkers union, which has voiced public opposition to the $14.9 billion agreement. Prominent politicians from both parties have also voiced opposition to a foreign buyer acquiring a once-iconic American manufacturing behemoth. Former President Donald Trump, who is expected to challenge Biden in November, stated in January that he would “block it instantaneously” if he were to win the presidency again.
According to an industry source who spoke about the situation on the condition of anonymity in order to comment on internal discussions, administration officials have informed the Japanese government of the president’s plans and justified the statement by citing his need to maintain political support in Pennsylvania in the upcoming election in November.
In the crucial swing state of Pennsylvania in 2020, Biden defeated Trump by a margin of over 80,000 votes. Biden—who frequently claims to be “the most pro-union president in American history”—won the Keystone state with the help of organized labor, particularly the United Steelworkers.
The affection has been returned by the Steelworkers Union. USW President David McCall gave the president’s initiatives to advance homegrown infrastructure and manufacturing high marks this month.
“President Biden delivered win after win for working people during his first three years in office, and USW members look forward to working with him as he continues his fight to grow the middle class and an economy for all,” McCall said in a statement.
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