Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale

ThatRobGuy · Dec 18, 2023

Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale

Sen. John Fetterman (D-Pa.) vowed Monday to work to block the $14.9 billion sale of U.S. Steel Corp. to Japanese steelmaker Nippon Steel, which he described as an “outrageous” move. The deal w…

thehill.com

Thought this would be an interesting one to discuss.

Recently, there was the other thread going around where the town in Michigan didn't feel comfortable with Chinese subsidiaries coming in and buying up land and facilities for the purposes of getting a foothold in certain US sectors. Some were implying that the attitudes of the towns people were xenophobic.

What are the similarities and differences between that situation and this one?

HTacianas · Dec 18, 2023

ThatRobGuy said:
Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale

Sen. John Fetterman (D-Pa.) vowed Monday to work to block the $14.9 billion sale of U.S. Steel Corp. to Japanese steelmaker Nippon Steel, which he described as an “outrageous” move. The deal w…

thehill.com

Thought this would be an interesting one to discuss.

Recently, there was the other thread going around where the town in Michigan didn't feel comfortable with Chinese subsidiaries coming in and buying up land and facilities for the purposes of getting a foothold in certain US sectors. Some were implying that the attitudes of the towns people were xenophobic.

What are the similarities and differences between that situation and this one?

Major media companies want to keep their foot in the door with China for profit just like they always have while Japan isn't much of a market for them?

Vambram · Dec 18, 2023

For one of the few times in Fetterman's career, I actually am agreeing with him.
Call me a jingoist Nationalist if you want, but I believe American corporations ought to remain American instead of being bought out by foreign investors and foreign corporations.

essentialsaltes · Dec 18, 2023

I mean, the news has an "end of an era" feel, but I don't see any strong reason to stop it. The price is good. I think the 'national security' angle is a non-starter. US Steel is not even the biggest American steel producer in the US. Nucor is.

And speaking of eras, one of US Steel's problems is that it has not modernized its equipment. So it's not as competitive as it might be.

Anyway Nippon is probably not buying these assets to shut them all down. I assume it will avoid tariffs on steel it produces in the US.

From powerhouse to afterthought: US Steel, once a symbol of America’s economic might, set to be sold to Japanese rival

Pommer · Dec 18, 2023

essentialsaltes said:
I mean, the news has an "end of an era" feel, but I don't see any strong reason to stop it. The price is good. I think the 'national security' angle is a non-starter. US Steel is not even the biggest American steel producer in the US. Nucor is.

And speaking of eras, one of US Steel's problems is that it has not modernized its equipment. So it's not as competitive as it might be.

Anyway Nippon is probably not buying these assets to shut them all down. I assume it will avoid tariffs on steel it produces in the US.

From powerhouse to afterthought: US Steel, once a symbol of America’s economic might, set to be sold to Japanese rival

The main drag in Braddock hasn’t been paved in over a dozen years but he’s going to fight Nippon Steel over this?
okay.

ThatRobGuy · Dec 18, 2023

HTacianas said:
Major media companies want to keep their foot in the door with China for profit just like they always have while Japan isn't much of a market for them?

I think there are some more intricate and nuanced similarities and differences between the two cases...

For instance

In the case of the Michigan town, the Chinese subsidiaries were looking to open up a new branch (and not buy an existing company)

On the flip side, in terms of US security concerns, Japan (despite buying an existing company and not merely opening up a new one...thereby supplanting it) doesn't present the same threat/risks that China does.

So the two situations aren't perfect "feature parity" per say.

But both are cases where people are taking the position of "I don't want foreign interest taking what should belong to America".

I was interested in analyzing the different social reactions to it. It would seem that people were quick to think the Michiganders who didn't want a Chinese company coming in and getting a foothold on the EV battery sector were "racist", but we're not hearing much in that way with regards to the stance Fetterman has taken about not wanting a Japanese company to come in and get a foothold.

To me, it has the tinge of being a "nationalism double standard"

It's an organization that was founded by a bunch of rich guys that happens to have "US" in the name (they're about as Federal as Federal Express)

And this little bit:
U.S. Steel said in its announcement that Nippon Steel will “honor all collective bargaining agreements with United Steelworkers Union as part of commitment to maintaining strong stakeholder relations” and that the headquarters will remain in Pittsburgh, Pa.

Nippon Steel said that the higher demand for steel under the Infrastructure Investment and Jobs Act was one of the contributing factors in the deal.

...means that Fetterman's concern for Union workers or job losses should be a non-issue.

Bradskii · Dec 18, 2023

ThatRobGuy said:
Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale

Sen. John Fetterman (D-Pa.) vowed Monday to work to block the $14.9 billion sale of U.S. Steel Corp. to Japanese steelmaker Nippon Steel, which he described as an “outrageous” move. The deal w…

thehill.com

Thought this would be an interesting one to discuss.

Recently, there was the other thread going around where the town in Michigan didn't feel comfortable with Chinese subsidiaries coming in and buying up land and facilities for the purposes of getting a foothold in certain US sectors. Some were implying that the attitudes of the towns people were xenophobic.

What are the similarities and differences between that situation and this one?

It really seems like a deal that's too good to turn down. To the point where it would be reasonable to complain about anyone wanting to block it: Nippon Steel Corporation (NSC) to Acquire U. S. Steel, Moving Forward Together as the ‘Best Steelmaker with World-Leading Capabilities’

wing2000 · Dec 18, 2023

ThatRobGuy said:
What are the similarities and differences between that situation and this one?

It's not China. It it were, there would be significant howling from both parties...

ThatRobGuy said:
But both are cases where people are taking the position of "I don't want foreign interest taking what should belong to America".

According to an October press release, U.S. Steel “supported an estimated 11,417 jobs” in Pennsylvania, including more than 3,700 directly employed by the company. The October report estimated that U.S. Steel generated $3.6 billion for the local and state economy in fiscal 2022.

Fetterman reiterated his support for the steelworkers in Pennsylvania in his statement and also posted a video taken from the roof of his house on X that shows his home directly across from the steel plant in Braddock, Pa.

...yea, it's not going down so well in steel country.

wing2000 · Dec 18, 2023

essentialsaltes said:
Anyway Nippon is probably not buying these assets to shut them all down. I assume it will avoid tariffs on steel it produces in the US.

That may be the case.
It's also true Nippon may provide these workers more job security by running company better.
And it may be a good business decision.

Still, steel is a part of the history & culture in PA. Selling the company to a foreign entity will feel like a sell out.

Ana the Ist · Dec 19, 2023

ThatRobGuy said:
Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale

Sen. John Fetterman (D-Pa.) vowed Monday to work to block the $14.9 billion sale of U.S. Steel Corp. to Japanese steelmaker Nippon Steel, which he described as an “outrageous” move. The deal w…

thehill.com

Thought this would be an interesting one to discuss.

Recently, there was the other thread going around where the town in Michigan didn't feel comfortable with Chinese subsidiaries coming in and buying up land and facilities for the purposes of getting a foothold in certain US sectors. Some were implying that the attitudes of the towns people were xenophobic.

What are the similarities and differences between that situation and this one?

I agree with Fetterman, and as a side note...it's nice to see him improving from his stroke. I can tell I was wrong about his chances for recovery.

I think he's making the issue of national security and tying it with economic security for a reason.

You simply cannot sell off all essential industries (mining, steel work, construction, energy production, agriculture, I would add any defense industries and high tech sectors like microchips to the traditional sectors) to overseas companies that ultimately aren't invested in the US.

That's what I believe he's referring to regarding "national security" not some concern about the Japanese spying on US citizens.

It's interesting to see how the left has sold out to corporate interests. Fetterman's position used to be the majority position on the left...and fighting for US workers used to be the typical left-wing position. Now the left cares more about corporate shareholder profits than the US worker and tax the rich has become something of a joke. The modern left on economic issues looks more like the right in the 80s-90s.

This has been predictable though....since the left was bought out post "Occupy Wall Street" and now spends all their time obsessing over superficial identity issues instead of the fact they can't buy a house. It's hard to argue for a sheep begging to be shorn.

durangodawood · Dec 19, 2023

Not with Fetterman on this one. Apparently Nippon Steel has a lot of tech that US Steel lacks and could benefit from. This could keep more steel making within the US.

Plus, Japan is a pretty strong ally and we have a lot of cultural and ideological ties despite being dire enemies last century. I had a great time exploring Kyushu by bike a few years back and was treated really well - even in Nagasaki, where for obvious reasons I thought I might be unfavorably regarded as an American.

(This doesnt make me wish for a Senator Oz tho - shudder)

ThatRobGuy · Dec 19, 2023

durangodawood said:
Not with Fetterman on this one. Apparently Nippon Steel has a lot of tech that US Steel lacks and could benefit from. This could keep more steel making within the US.

Plus, Japan is a pretty strong ally and we have a lot of cultural and ideological ties despite being dire enemies last century. I had a great time exploring Kyushu by bike a few years back and was treated really well - even in Nagasaki, where for obvious reasons I thought I might be unfavorably regarded as an American.

I guess I can "kind of" see why some people have a stand-offish view of this...

However, given that the Japanese country doesn't run the same risks as China, and that, as you said, their tech is more advanced in this sector, it makes more sense to have a partnership rather than a "we gotta stick with a sinking ship because the ship has an American flag on it" mentality. (plus, they've already said they plan on honoring all collective bargaining agreements that are already in place)

We made that mistake a few decades back in the Automotive industry. Rather than looking to Japan as a potential partner and someone to collaborate with, people stuck to their guns and we had over a decade's worth of lousy cars, declining sales...as Toyota and Honda became household names and kicked our butts to the point where people were willing to pay additional fees and tariffs (which were put on them specifically to try to dissuade people from buying Japanese and buy American instead...it didn't work) to get a Toyota while GM dealerships were stuck with a surplus of Chevy Luminas and Pontiac Sunfires that nobody wanted.

wing2000 · Dec 19, 2023

ThatRobGuy said:
I guess I can "kind of" see why some people have a stand-offish view of this...

However, given that the Japanese country doesn't run the same risks as China, and that, as you said, their tech is more advanced in this sector, it makes more sense to have a partnership rather than a "we gotta stick with a sinking ship because the ship has an American flag on it" mentality. (plus, they've already said they plan on honoring all collective bargaining agreements that are already in place)

We made that mistake a few decades back in the Automotive industry. Rather than looking to Japan as a potential partner and someone to collaborate with, people stuck to their guns and we had over a decade's worth of lousy cars, declining sales...as Toyota and Honda became household names and kicked our butts to the point where people were willing to pay additional fees and tariffs (which were put on them specifically to try to dissuade people from buying Japanese and buy American instead...it didn't work) to get a Toyota while GM dealerships were stuck with a surplus of Chevy Luminas and Pontiac Sunfires that nobody wanted.

Yes, that's why my first new car (1988) was a Honda.

...and now, most Toyotas and Hondas are now assembled in the U.S. Japan has an established history of investing in US factories (and jobs).

(2018)
Bloomberg put together this handy chart using data from the Japan Automobile Manufacturers Association (JAMA) showing that 69 percent of the Japanese cars sold in the U.S. are built domestically while the other 31 percent are built in Japan and imported to the States. That’s a huge contrast to what those numbers were in 1985 when 91 percent of cars from Japanese automakers sold in the U.S. were built in Japan. That’s a 45 percent drop in imports over 33 years.

Japanese Automakers Build Twice as Many Cars in U.S. Than Import

There are talks of a 25 percent tariff on imported Japanese cars.

www.thedrive.com

essentialsaltes · Dec 22, 2023

Amid US Steel blowback, Biden (and Trump) tread cautiously

Leaders in both parties have been more restrained than some rank-and-file lawmakers — a sign of the countervailing economic and political dynamics at play.

Nippon Steel’s $14.1 billion cash offer is nearly double what fellow American steelmaker Cleveland Cliffs offered to pay for U.S. Steel in a merger bid in August.

Industry analysts are skeptical, however, that the company’s sale will be ruled a genuine national security threat. The Defense Department’s top concern from a national security perspective is making sure there is adequate steel production in the United States for its military needs, which previous estimates have put at about three percent of domestic production, Jeff Schott, a senior fellow at the Peterson Institute for International Economics, said.

Trump has seized on other examples of foreign companies taking advantage of U.S. manufacturing incentives under Biden. But he has been uncharacteristically quiet on the U.S. Steel sale. His campaign did not return multiple requests for comment

Sens. Marco Rubio (Fla.), J.D. Vance (Ohio) and Josh Hawley (Mo.) wrote in a letter to Yellen sent Tuesday. “Allowing foreign companies to buy out American companies and enjoy our trade protections subverts the very purpose for which those protections were put in place.” [Are they there to protect the American worker, or an American corporate structure?]

Former Trump Commerce Secretary Wilbur Ross, however, told Fox Business News earlier this week there was no reason other than “xenophobia” to reject the sale. He also derided national security concerns expressed by lawmakers as “silly” and said opponents of the sale were “just people in swing states pandering to the union.”

[I feel dirty, a Trump Cabinet member essentially holds the same opinion I do.]

iluvatar5150 · Dec 22, 2023

essentialsaltes said:
Sens. Marco Rubio (Fla.), J.D. Vance (Ohio) and Josh Hawley (Mo.) wrote in a letter to Yellen sent Tuesday. “Allowing foreign companies to buy out American companies and enjoy our trade protections subverts the very purpose for which those protections were put in place.” [Are they there to protect the American worker, or an American corporate structure?]

Huh? How does that work? I thought the trade protections were to protect the workers and the domestic industrial capacity. How does foreign ownership of an American factory (with American workers) run counter to that unless their real goal is to protect American shareholders?

essentialsaltes · Mar 15, 2024

Biden calls American ownership of U.S. Steel ‘vital’ as he opposes deal

“It is important that we maintain strong American steel companies powered by American steel workers,” Biden said in a statement. “I told our steel workers I have their backs, and I meant it. U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated.”

Biden’s statement follows a meeting last week between Nippon Steelexecutives and representatives of the United Steelworkers union, which has publicly opposed the $14.9 billion deal.

In January, former president Donald Trump, Biden’s likely opponent in November, said of the deal that he would “block it instantaneously” if he returned to the White House.

essentialsaltes · Jan 3, 2025

essentialsaltes said:
I mean, the news has an "end of an era" feel, but I don't see any strong reason to stop it. The price is good. I think the 'national security' angle is a non-starter. US Steel is not even the biggest American steel producer in the US. Nucor is.

essentialsaltes said:
Biden calls American ownership of U.S. Steel ‘vital’ as he opposes deal

Biden blocks U.S. Steel sale to Japanese buyer

The announcement came in a presidential order posted on the White House website, declaring Nippon Steel’s $14.9 billion bid for the U.S. steelmaker “prohibited.” If completed, the deal “threatens to impair the national security of the United States,” the president said.

[In December] The Committee on Foreign Investment in the United States (CFIUS) said it was unable to reach a consensus on the risks of the Nippon Steel deal, leaving the final verdict with the White House.

Biden’s decision to kill the deal is likely to trigger legal challenges by the companies, which have complained about a lack of due process throughout the review.

wing2000 · Jan 3, 2025

In this case, I agree with Pompeo. Together, US Steel and Nippon, can more effectively challenge China. To deny a 3 Billion dollar investment in US-based steel manufacturing makes no economic sense.

Many U.S. Steel workers came out in support of it, arguing that the company desperately needed the investment. Last month, three members of the Congressional Black Caucus sent a letter to the White House making the case that the transaction was important for the future of American manufacturing.

And Mike Pompeo, who served as Mr. Trump’s secretary of state in his first term and who has been advising Nippon, wrote in The Wall Street Journal that the deal would allow the United States to challenge China’s global steel dominance.

Biden Blocks Takeover Bid of U.S. Steel by Japan’s Nippon

The president said he was moving to protect national security in deciding the fate of the iconic Pennsylvania-based company, which became a contentious political issue in an election year.

www.nytimes.com

durangodawood · Jan 3, 2025

Yeah this was a Biden mistake that he saved from being a Trump mistake.

Hazelelponi · Jan 3, 2025

ThatRobGuy said:
I think there are some more intricate and nuanced similarities and differences between the two cases...

For instance

In the case of the Michigan town, the Chinese subsidiaries were looking to open up a new branch (and not buy an existing company)

On the flip side, in terms of US security concerns, Japan (despite buying an existing company and not merely opening up a new one...thereby supplanting it) doesn't present the same threat/risks that China does.

So the two situations aren't perfect "feature parity" per say.

But both are cases where people are taking the position of "I don't want foreign interest taking what should belong to America".

I was interested in analyzing the different social reactions to it. It would seem that people were quick to think the Michiganders who didn't want a Chinese company coming in and getting a foothold on the EV battery sector were "racist", but we're not hearing much in that way with regards to the stance Fetterman has taken about not wanting a Japanese company to come in and get a foothold.

To me, it has the tinge of being a "nationalism double standard"

It's an organization that was founded by a bunch of rich guys that happens to have "US" in the name (they're about as Federal as Federal Express)

And this little bit:
U.S. Steel said in its announcement that Nippon Steel will “honor all collective bargaining agreements with United Steelworkers Union as part of commitment to maintaining strong stakeholder relations” and that the headquarters will remain in Pittsburgh, Pa.

Nippon Steel said that the higher demand for steel under the Infrastructure Investment and Jobs Act was one of the contributing factors in the deal.

...means that Fetterman's concern for Union workers or job losses should be a non-issue.

nope I'm with Fetterman here. We shouldn't allow the sale. It makes me angry they would even consider it.

I go out of my way to make sure I buy US steel, for them to sell to a foreign nation is betrayal.

Fetterman says he’ll work to block ‘absolutely outrageous’ US Steel sale

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From powerhouse to afterthought: US Steel, once a symbol of America’s economic might, set to be sold to Japanese rival​

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From powerhouse to afterthought: US Steel, once a symbol of America’s economic might, set to be sold to Japanese rival​

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Amid US Steel blowback, Biden (and Trump) tread cautiously​

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Biden calls American ownership of U.S. Steel ‘vital’ as he opposes deal​

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Biden blocks U.S. Steel sale to Japanese buyer​

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