Back in April, when President Joe Biden was still running for reelection, he told a gathering of steelworkers in Pittsburgh that “I have your back.” On Friday morning, just three weeks before leaving office, he stuck a knife in their backs.
He did so by blocking Japan’s Nippon Steel’s proposed $14.9 billion purchase of the once-iconic, now-declining U.S. Steel. The ostensible rationale was “national security.” As Biden put it in a statement Friday morning, “It is my solemn responsibility as president to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry.” He added, “And it is a fulfillment of that responsibility to block foreign ownership of this vital American company.”
If only. Blocking the deal is just going to hurt the U.S. steel industry, and everyone in the industry, including the workers themselves, knows it. The real reason Biden stopped Nippon Steel from buying U.S. Steel was politics—a combination of placating his union allies and a misguided belief that U.S. Steel must remain in American hands at all costs. The irony is that this economic nationalism and union nostalgia could kill 3,000 union jobs and push U.S. Steel out of Pittsburgh.
