President-elect Donald Trump has long promoted an “America First” industrial policy that privileges domestic manufacturers over foreign ones. But he’s also been known to carve out exceptions without much explanation while paying little price for it politically.
Right now, the only hope for a cornerstone of American industry is that he once again makes an exception.
Pittsburgh-based U.S. Steel stands on the precipice of disaster, potentially costing thousands of blue-collar union members their jobs in the battleground state of Pennsylvania. Its only hope of salvation is a proposal from Japan’s Nippon Steel to acquire it and allow it to keep its name and headquarters.
Trump has indicated that he doesn’t want the steel company to be owned by a foreign company.
President Joe Biden blocked the deal, however, and Trump has indicated that he doesn’t want the steel company to be owned by a foreign company either.
U.S. Steel CEO David Burritt recently went on CNBC to make the case using Trump’s own rhetoric, casting Biden’s decision as “corrupt” and arguing the deal would “make U.S. Steel great again.” While I have little faith in Trump’s inclination to do what’s right, it’s worth a shot, especially considering his flip-flop on TikTok’s Chinese ownership.
It’s not surprising that Biden and Trump both oppose the deal, as leaning into economic populism propelled each of them to the White House. Unfortunately, it is the type of protectionist answer that may get you the White House job but doesn’t make pragmatic economic sense.
Trump has even called for more friendly foreign investment in the U.S., saying in September: “Here is the deal that I will be offering to every major company and manufacturer on Earth — I will give you the lowest taxes, the lowest energy costs, the lowest regulatory burden, and free access to the best and biggest market on the planet. But only if you make your product here in America. … And hire American workers for the job.” That just happens to describe the Nippon deal.
And because there’s no consensus at the Treasury Department, all Trump has to do is say he wants the deal and will not block it and it goes through. I doubt very much Trump’s treasury secretary will make a different call.
The truth is that most Americans would like to see U.S. Steel remain under American ownership. But that isn’t possible if we want U.S. Steel to remain in Pittsburgh; Gary, Indiana; and Birmingham, Alabama, and for steelworkers to keep their jobs. There is no better alternative. If there were, that would be the deal, and it would have been done already. Another truth is that inaction will have a catastrophic impact on steelworkers. If Biden’s rejection of this deal earlier this month is allowed to stand under the incoming Trump administration, an institution that has been providing solid, sustainable economic opportunity for countless Americans since 1901 will dissolve.
In court filings this week, Nippon and U.S. Steel emphasized how the deal would help, not harm, American workers: “Nippon Steel is the only partner both willing and able to make the necessary investments — including no less than $1 billion to Mon Valley Works and approximately $300 million to Gary Works as part of the $2.7 billion committed — to protect and grow U.S. Steel for the benefit of employees, the communities in which it operates, and the entire American steel industry.”
To be clear, this deal is about protecting and saving jobs, which is why three members of the Congressional Black Caucus, Reps. Maxine Waters, Jim Clyburn and Bennie Thompson, sent a letter endorsing it.
Nippon Steel has even stepped up with a proposal that directly protects America’s steel industry and its workers.
Nippon Steel has even stepped up with a proposal that directly protects America’s steel industry and its workers. It has offered the U.S. government a 10-year veto over any cuts to production at key U.S. Steel mills, ensuring that these facilities remain operational and under American oversight — a deal that neither administration should be turning down.
Congressional and private-sector allies who understand what is at stake for countless hardworking union and nonunion families must try to persuade the incoming Trump administration of the importance of the job, economic and retirement security issues raised by workers who support the U.S. Steel transaction. Trump shouldn’t take for granted his election victory, which would not have happened without the working-class voters of states like Pennsylvania.
For more thought-provoking insights from Michael Steele, Alicia Menendez and Symone Sanders-Townsend, watch “The Weekend” every Saturday and Sunday at 8 a.m. ET on MSNBC.
