US Steel, once a symbol of American economic prowess and a beacon of American manufacturing, is a husk of its former self. From being the 8th largest world steel producer in 2008 to the 24th in 2022. Now Japan-based Nippon Steel is attempting to acquire the company.
USW President Thomas Conway recently began a 13-day campaign to persuade the union’s 225,000 members to oppose the $14.9B acquisition. Conway’s roadshow signals growing concern that the deal could compromise American jobs, labor rights, and long-term industrial independence.
“We can’t afford to cede control of a strategic industry to foreign interests, no matter how friendly,” Conway said during one of his town hall stops, emphasizing the risk of future job cuts. “It’s not just about today’s workforce; it’s about the next generation of steelworkers.”
However, not all union members share Conway’s skepticism. Some argue that Nippon Steel’s ownership could introduce capital investments, enhance production capabilities, and secure jobs by modernizing U.S. Steel’s aging infrastructure. Members from plants in Pennsylvania and Michigan expressed mixed views, reflecting uncertainty over whether opposition would lead to better outcomes if U.S. Steel struggles independently.
“We’ve seen American owners cut corners and jobs too,” said a veteran steelworker in Pittsburgh, voicing cautious optimism. “What matters is whether the new owners respect our contract and keep production here.”
Conway’s campaign underscores the challenge facing union leadership: balancing concerns about foreign ownership with the pragmatic need to secure sustainable jobs amid a highly competitive global steel market.
For Nippon Steel, the acquisition represents a strategic opportunity to gain access to U.S. Steel’s operations and expand into North America, a market crucial to its long-term growth. With rising domestic demand for high-strength steel used in automotive manufacturing and green energy projects, Japanese ownership could bring in expertise and capital that U.S. Steel currently lacks.
Economists highlight that U.S. Steel has been struggling financially in recent years, with outdated plants and fluctuating profitability. Some believe that a merger with Nippon Steel could rejuvenate the company, benefiting the U.S. economy by ensuring the survival of key production facilities.
“The steel industry is facing serious global competition,” said Marshall Green, a professor of industrial economics. “Without modernization and foreign investment, U.S. Steel risks falling behind—potentially costing thousands of jobs.”
However, the potential loss of American ownership has raised alarms. Critics argue that the acquisition could reduce U.S. control over an essential industry, weakening supply chains and national self-reliance. Others worry that future decisions by Nippon Steel, such as plant closures or outsourcing, could come at the expense of American workers.
The acquisition has also triggered debate over whether Japanese ownership of U.S. Steel poses a threat to national security. Several lawmakers have voiced concerns that transferring control of critical steel infrastructure to a foreign entity could weaken the U.S.’s ability to produce steel for defense projects.
Senator Josh Hawley, a vocal critic of the deal, warned that the U.S. cannot allow “foreign influence over an industry that’s essential to national defense.” Hawley and other opponents argue that even allied countries should not control assets critical to national security, including those involved in defense contracts.
However, some analysts dismiss these concerns as political grandstanding. “Nippon Steel is a private company with no direct ties to Japan’s defense sector,” argued Robert Simmons, an international trade expert at Boston University. “The national security angle may be overstated, particularly since Japanese companies have invested in the U.S. without compromising defense interests in the past.”
The Biden administration has yet to take a public stance, but it could ultimately play a decisive role. The Committee on Foreign Investment in the United States (CFIUS) will review the deal, assessing potential national security risks before giving final approval. Lobbying efforts on both sides have intensified, with Nippon Steel spending millions to win over lawmakers and regulators.
The fate of the Nippon Steel-U.S. Steel deal remains uncertain, with competing interests shaping the discourse. The union’s leadership will need to navigate internal divisions while policymakers balance economic interests with national security considerations. As the CFIUS review proceeds, steelworkers, economists, and politicians will continue to grapple with the complexities of the acquisition.