Nippon Steel’s proposed purchase of U.S. Steel a controversial issue

TOKYO — We’ve seen this story before. Last December, Japan steelmaker Nippon Steel Corporation, the third-largest steel producer in the world, agreed to buy U.S. Steel for $14.9 billion, a deal which, if executed, would make the legendary American  firm a wholly-owned subsidiary of the Japanese company. This has generated much controversy within the United States, highlighted by criticism of the deal from the Biden Adminstration as well as a statement of opposition from Presidential candidate Donald Trump, who pledged to block the deal if elected this coming November. Lawmakers from both houses and both leading political parties have joined in the opposition to the purchase due to concerns about its impact on workers, supply chains, and national security.

All this opposition exists despite support from various government officials, policy experts, and business analysts, who argue that such a deal would help revitalize U.S. Steel and the country’s declining steel industry and counter that Japan is a major trading partner and investor in the U.S.