Several months ago, a possible deal was announced to sell an American staple, U.S. Steel.
Nippon Steel, a Japanese-based company, had made a proposal to buy the company, which immediately brought up objections from the right, including Donald Trump.
Now, Joe Biden is voicing similar concerns.
Block the Deal
The $15 billion deal would move ownership of the American company to Japanese hands, and that is not sitting well with a lot of lawmakers.
Trump has even added this to his talking points.
Immediately after the deal was announced, Donald Trump was asked about it, and he stated that if he were in office, he would block the deal “instantaneously.”
Trump, at the time, stated, “I would block it instantaneously. Absolutely.
“We saved the steel industry. Now, U.S. Steel is being bought by Japan. So terrible.”
Trump, as he does often, did not supply any details on how he would accomplish this, but he remained firm that the deal would not go through on his watch.
This narrative has taken on a life of its own, so, not surprisingly, Joe Biden has suddenly decided to express concerns about the deal himself.
The White House is reportedly drafting a letter expressing these concerns, which will then be presented to Japanese officials upon their upcoming state visit to the White House.
Matthew Goodman, a trade and economics expert at Washington’s Council on Foreign Relations think tank, assessed the situation as being an issue solely because it is an election year.
He stated, “It’s much more to do with politics in an election year when both nominees are appealing to support from steel workers and unions.”
Trump has been trying to lure unions away from Biden, and while Biden has maintained support from union leadership, members are starting to get vocal about their support of Trump over Biden.
In this case, the concern would be that the jobs would be kept here in the United States with American workers rather than Nippon bringing Japanese over to take the positions.
U.S. Steel, which was founded in 1901, had had its stock impacted by this new narrative, closing at $40.86 on Wednesday, down $12.8%. As I write this report, the stock has dipped even lower, now at $36.73 per share, down about 10.11% as the market readies to close on Thursday afternoon.
This price is significantly lower than the price per share that Nippon has offered ($55/share).
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Author: G. McConway
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