Blocking Nippon Steel Harms Our Economy and Workers
Economic policy in the United States has long been a beacon of free market principles, rooted in the belief that competition fosters innovation, efficiency, and prosperity.
However, the Biden administration’s blatant interference in the Nippon Steel acquisition of U.S. Steel is a dangerous betrayal of those principles.
This action sacrifices economic growth and American jobs on the altar of political theater.
As a conservative economist, this writer sees this as not just misguided policy — it’s an assault on the very foundations of American economic leadership.
Let’s be clear: Nippon Steel’s $15 billion deal poses no legitimate national security risk.
The Pentagon, State Department, and Treasury have all independently reached this conclusion. These are the agencies tasked with safeguarding American interests, and they see no threat in this acquisition.
Yet the Biden administration, in a politically motivated attempt to curry favor with unions and special interest groups, insists on using CFIUS (Committee on Foreign Investment in the United States) to block this deal.
This is about politics, not security.
Biden’s opposition to the deal conveniently aligns with his electoral need to appease Pennsylvania union leaders and his political base.
But by doing so, he undermines American industries that rely on foreign investment to remain competitive.
If the administration truly wanted to strengthen the U.S. steel industry, it would embrace this opportunity to modernize our facilities, create jobs, and enhance global competitiveness.
U.S. Trade Representative Katherine Tai, who should be championing policies that attract investment and open new markets, has instead chosen to support these protectionist impulses.
Rather than using her platform to encourage competitive dynamics that benefit American workers and consumers, Tai appears content to reinforce the administration’s retreat into economic nationalism.
Her office’s stance not only contradicts the very essence of free market ideals but also sets a disturbing precedent: that Washington would rather shield domestic players from competition than push them to innovate and excel.
What’s even more alarming is the administration’s clear preference for Cleveland-Cliffs, a domestic bidder with a deeply questionable history.
Cliffs has long sought to dominate the steel market, and their acquisitions have already reduced competition in this critical industry.
A Cliffs monopoly would harm workers and consumers alike, driving up costs and stifling innovation. Allowing Cliffs to control U.S. Steel would entrench a single company’s power, putting American manufacturing at risk of higher prices and lower quality in the long run.
The consequences of blocking Nippon Steel go far beyond the steel industry.
It sends a chilling message to international investors: the United States no longer values free markets.
At a time when global investment is critical for maintaining America’s economic edge, this protectionist stance undermines our leadership.
Investors will take note that America, once the land of opportunity, is now willing to jeopardize economic growth for short-term political gains.
If Biden truly believed in putting America first, he would welcome the Nippon Steel deal. This transaction represents a commitment to American workers and infrastructure.
Nippon has pledged to invest in facilities, enhance technological innovation, and reward employees with tangible benefits like bonuses. This is the kind of partnership that strengthens industries and creates real, lasting opportunities.
America’s strength lies in its ability to lead, compete, and innovate.
By blocking the Nippon Steel acquisition, the Biden administration — and by extension, representatives like Katherine Tai — are choosing political pandering over progress. Conservatives must stand against this dangerous precedent and demand policies that prioritize economic growth, competition, and American jobs.
Nippon Steel’s investment in U.S. Steel is not just a transaction — it’s a chance to secure America’s industrial future.
Turning it away is a grave mistake.
Charlie Kolean has worked as a senior policy adviser for state legislators, multinational corporations, and think tanks. Mr. Kolean has been involved in politics for over a decade as an activist, candidate, political consultant, and party leader. He was a bundler on the Trump Finance Victory Committee and is a member of the American Association of Political Consultants. Readmore of his reports — Here.