Image Credit: The Japan Times
Nippon Steel is facing increasing pressure as it works to finalise the $14.1 billion acquisition of U.S. Steel, with a critical visit planned by the company’s top executive to Pittsburgh in a bid to secure support from steelworkers and local politicians. Despite Donald Trump’s earlier promises to protect American manufacturing, his silence on the deal has left Nippon Steel in a precarious position, as the transaction risks being stalled by union resistance and political opposition.
The acquisition, which has drawn growing opposition from the United Steelworkers (USW) union leadership, is seen by Nippon Steel as an opportunity to bolster its presence in the U.S. and secure critical investments in American steel. However, the deal has become increasingly controversial, with rank-and-file members of the USW, particularly in Pennsylvania, divided over the potential benefits. While union leaders like USW International President David McCall have voiced strong opposition, calling for more concessions from Nippon Steel, some union members, including Local 2227 Vice President Jason Zugai, have expressed support for the deal, arguing it is essential for protecting jobs in the steel industry.
Zugai, who spoke directly with Trump during the campaign, has urged the former president to reconsider his stance on foreign investment, pointing out that the deal could help ensure the survival of U.S. Steel and safeguard employment for steelworkers. According to Zugai, Trump had initially expressed concern about the sale to a foreign company but was persuaded that it could fulfil one of his campaign promises to attract foreign investment to the U.S.
However, McCall remains steadfast in his opposition, accusing Nippon Steel’s executives, including Executive Vice President Takahiro Mori, of attempting to drive a wedge between union members. He argued that Mori’s visit was solely aimed at closing the transaction, rather than preserving American jobs or strengthening the U.S. steel industry. McCall has insisted that any agreement must include guarantees of capital investment to protect workers’ futures.
As Nippon Steel waits for approval from the Committee on Foreign Investment in the U.S. (CFIUS), the company has sought to reassure both workers and political leaders about its commitment to the future of U.S. Steel. While the Japanese company has stated it plans to engage in further talks with union representatives, the deal remains in limbo, with a final decision expected by December. In the meantime, political tensions continue to rise, especially as President Joe Biden has voiced his opposition to foreign takeovers of U.S. steel companies, pledging to keep U.S. Steel under American ownership.