Another win for economic nationalism, but a loss for America
Nippon Steel’s failed takeover of US Steel shows that the country is moving away from the free trade policies of earlier administrations
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US PRESIDENT Joe Biden’s decision to block the friendly US$15 billion takeover by Japan’s Nippon Steel of the foundering US Steel – a move supported by president-elect Donald Trump – is another demonstration that Washington is moving away from the free trade policies of earlier Democratic and Republican administrations and embracing an economic nationalist agenda.
President Biden’s action came after a Dec 23 report by the Committee on Foreign Investment in the United States (CFIUS) that stated that it could not reach a consensus on the risks of the Nippon deal.
The deal made sense from the perspective of US Steel and its workers. Nippon Steel promised US$2.7 billion in capital to help modernise US Steel’s ageing plants, including Mon Valley Works, the company’s oldest mill, and to honour collective-bargaining agreements, in addition to offering workers US$5,000 in bonuses.
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