One of America’s most important companies was just sold off, and Biden is ignoring it

Photo by Gage Skidmore, CC BY-SA 2.0, via Flickr, https://creativecommons.org/licenses/by-sa/2.0/

As the American economy suffers, no one is paying attention to the strategic dangers facing the U.S.

If the U.S. is going to defend itself against foreign enemies, it needs certain strategic businesses to stay strong.

But the Biden Administration not only turned its back on workers but on the U.S. when it allowed this iconic company to be sold off to the highest bidder.

U.S. Steel was acquired by a Japanese company

The production and manufacturing of steel is one of the building blocks of a strong American economy.

However, one major portion of the industry is now being “sold off to the highest bidder,” according to members of the United Steelworkers (USW) Union.

In December, U.S. Steel announced that they were selling the company to Japan’s Nippon Steel, the world’s fourth-largest steelmaker, in a deal worth $14.9 billion, which was a 40% premium to what the company stock was at the time.

Then in February, U.S. Steel said in a statement that the investment “will strengthen the American steel industry for the benefit of American consumers, employees, and communities.”

Shareholders are already seeing positive returns thanks to the deal, but union members aren’t very happy about the transition, citing concerns over job security and their futures with a foreign company.

Local 1219 President Michael Evanovich spoke to FOX Business during an interview on “Mornings with Maria,” saying, “It was the workers that drove the force for the profits to be made, and at the end of the day, they sold off to the highest bidder to line their own pockets and left these guys kind of holding the bag with an uncertain future.”

USW Local 1557 President Don Furko said, “I feel like they already haven’t put America first, by selling out to a foreign entity.”

So far, Nippon Steel has backed its original claims to uphold and honor the union’s collective bargaining agreement.

A spokesperson for the company told FOX Business that there would be “no layoffs or facility closures as a result of this transaction, we will not offshore existing U.S. production capacity and U.S. Steel’s headquarters will remain in Pittsburgh.”

There’s still reason to be concerned

While Nippon Steel claims that it has no plans to lay off employees or close any facilities, some union members remain skeptical, and for good reason.

U.S. Steel issued layoff warnings to 1,000 employees at its Granite City, Illinois mill last year.

They said they expected to fire approximately 60% of workers due to the indefinite idling of iron and steelmaking operations at that location.

Edith Arnold, a woman with a relative who’s worked at the mill for over three decades, told local news outlet KTVI, “You’ve got these small businesses that depend on that income to come in, and these businesses want these people to come in and spend their money. You shut them down, what are they going to do?”

In December 2023, the White House said the steel company deal deserves “serious scrutiny,” although former President Donald Trump said he would have blocked the sale altogether.

Just this week, Trump told FOX Business host Maria Bartiromo, “And now Japan is buying U.S. Steel. U.S. Steel: you know what a name that is? That’s the most important name. Fifty years ago, there was no company like U.S. Steel. Now that Japan is buying it, I don’t think I’d let that deal go through.”

Informed American will keep you up-to-date on any developments to this ongoing story.