Originally Authored at TheFederalist.com
President-elect Donald Trump posted Monday on Truth Social that he opposes the sale of U.S. Steel to Japan-based Nippon Steel Corporation and said he will use a “series of tax incentives and tariffs” to make U.S. Steel strong.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump wrote. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!”
The December 2023 announcement that Nippon intends to buy Pittsburgh-based U.S. Steel for $14.9 billion left many stunned and vowing to block the deal. President Joe Biden, Vice President Kamala Harris, and a bipartisan selection of members of Congress have all expressed a desire to keep the iconic company American-owned.
Soon after the merger announcement a year ago, members of Congress urged the Committee on Foreign Investment in the United States (CFIUS) to review and block the acquisition based on national security. Steel is used in the construction of bridges, railroad tracks, warships, vehicles, missiles, and munitions, making it critical for the U.S. to maintain control over steel.
The CFIUS decision is expected this month.
But U.S. Steel workers have warmed to the idea, seeing the sale to Nippon as a path to modernize their aging plants and keep the fires burning for years to come. With recent comments from President-elect Donald Trump, and federal decisions on the sale imminent, steel workers wonder what the future holds for their industry.
The United Steel Workers (USW) Union has a split opinion on the matter. The national union, which also represents workers at U.S. Steel’s rival Cleveland Cliffs, has vigorously opposed the sale to Nippon.
Cleveland Cliffs tried to buy U.S. Steel last year, proposing a cash-and-share bid in August 2023, valuing U.S. Steel at $7.25 billion. U.S. Steel rejected that offer, calling it unreasonable.
“It’s clear that President Trump understands the vital role a strong domestic steel industry plays in our national security, as well as the importance of the jobs and communities the industry supports,” the national USW said in a statement Tuesday.
But the local USW members in Pennsylvania support the Nippon sale, Jason Zugai, Vice President United Steelworkers Local 2227, told The Federalist. Zugai works at one of the four Mon Valley Works steel plants in Pennsylvania, located in the towns of Clairton, Braddock, Fairless Hills, and West Mifflin.
“The only problem is, (Cleveland Cliffs) doesn’t have the capital to put the investments into our facilities that we need,” Zugai told The Federalist. “They’ve already started to switch the plant business plan and moving down to Big River in Arkansas. They’re going from the integrated mills to the mini mills, the electric arc furnaces, and moving down to Arkansas.”
The Pennsylvania plants need to be updated, he said. For example, the Irvin Works plant in West Mifflin was built in 1938.
While Cleveland Cliffs can’t afford to buy its rival, Nippon Steel has committed to the purchase, plus $2.4 billion to upgrade U.S. Steel facilities, including at least $1 billion spent on Mon Valley upgrades, making it more competitive.
“Nippon Steel will replace and/or upgrade the existing hot strip mill at Mon Valley Works and other facilities,” the company said in a statement. “Nippon Steel believes that a transformed Mon Valley Works will expand U.S. Steel’s ability to serve a broader range of markets and customers, create additional high-grade steel capabilities, strengthen the competitive positioning of Mon Valley’s blast furnace operations, and secure American steel supply.”
Without these investments, Zugai said, the local mills won’t be able to stay competitive and the company will move the work out of the state.
“The writing’s on the wall,” Zugai said. “But with Nippon, they are coming in committing to these investments to keep the valley running and keeping the integrated working alongside of the electric arc furnace mini mills that we have. So, I understand what President Trump is saying, but that doesn’t help the 3,500 people that work in the Mon Valley keep their jobs.”
Zugai does not believe Cleveland Cliffs could compete well against Nippon, with the new technology and money they bring to the U.S. market, and that is why he believes USW president David McCall would prefer U.S. Steel to go to Cleveland Cliffs.
“I would like to see what other plan (Trump) has, because if not, if we don’t get this deal done, it’s going to cost thousands of jobs,” Zugai said. “I want to know what the alternative is. Because in one sense, (Trump) says ‘When I’m President, I want foreign countries to invest in the United States, and, I want to save American jobs.’ Well, you’ve got both with this deal right here. You’ve got a foreign country investing in the United States, $14.9 billion, and then you’re saving American jobs. You get both, so I don’t understand the problem.”
Sen. John Fetterman, D-Penn., who lives across the street from U.S. Steel’s Edgar Thomson plant in Braddock, has been solidly opposed to the sale.
“I’m calling bullsh-t on the U.S. Steel executives, just like I did shortly after that first announcement,” Fetterman said in a September statement after U.S. Steel announced it would move its headquarters from Pittsburgh if the Nippon sale doesn’t happen.
Fetterman made a social media post showing him speaking on top of his home, with the U.S. Steel stacks behind him, promising to do everything he can to block the sale to, “Fight for the steel workers and their union way of life.”
Sen. Bob Casey, D-Penn., who was just voted out of office, also opposes the sale to Nippon.
“Pennsylvania workers are the American steel industry’s greatest asset. I have long held concerns that this sale could be a bad deal for our workers, and I share President Biden’s commitment to maintaining an American steel industry,” Casey said in a March statement. “My number one priority is protecting union jobs in the Mon Valley and I’ll work like hell against any deal that leaves our Steelworkers behind.”
Wearing his hard hat, Zugai and other steel workers spoke at the Oct. 19 Trump rally in Latrobe, Pennsylvania, in support of Trump. The steel union has historically been Democratic, but they largely flipped in support of Trump. Of the 800 union members at his plant, Zugai estimates 90 percent voted for Trump.
Now, the local USW workers who had Trump’s back in the election hope he will will find a way to keep their local jobs intact and strengthen steel’s position.
Pennsylvania Gov. Josh Shapiro Joins Workers, Local Leaders at the Cleveland Cliffs Butler Works plant.
Image CreditCommonwealth Media Service
“I am 100 percent on board to make U.S. Steel great again. Keeping U.S. Steel headquarters and operations in southwestern Pennsylvania is about keeping our jobs and our heritage in place for present and future generations,” Pennsylvania Senate President Pro Tempore Kim Ward, a Republican, said in a statement Tuesday. “President Trump’s comments to make U.S. Steel great again through his administration’s policies when he assumes the presidency, provide the promise of options and solutions that have been absent from the current administration.”
Sen. Ward has been supportive of the sale to Nippon, saying in a Nov. 19 letter to Pennsylvania Gov. Josh Shapiro that “concerns the acquisition poses a national security risk are unfounded.”
“Japan is one of our closest allies, and U.S. Steel’s focus on producing steel for the appliance and auto industries does not involve military applications,” Ward wrote. “Nippon Steel’s proposal provides an unprecedented opportunity to protect jobs, preserve our proud steel heritage, and secure the future of steel manufacturing at the Mon Calley Works. Without this investment, U.S. Steel’s leadership has signaled that it may shift focus away from the Mon Valley and relocate its headquarters from Pittsburgh — outcomes that would devastate Pennsylvania’s Steel industry, workforce and regional economy.”
Ward told Shapiro it is critical that he engage as governor to ensure the federal government understands the stakes for Pennsylvania. And, she said, “The people of U.S. Steel need to hear from you.”
Shapiro has not yet publicly stated his specific position on the sale. It is worth noting that a Cleveland Cliffs plant is located in Coatesville, Pennsylvania, located in Shapiro’s home county. Shapiro has held numerous press conferences at Cleveland Cliffs properties in the last year.
Beth Brelje is an elections correspondent for The Federalist. She is an award-winning investigative journalist with decades of media experience.