In a significant turn of events, former President Donald Trump has called for the reversal of President Joe Biden's decision to halt the sale of U.S. Steel to Nippon Steel, a move that has sparked considerable debate among industry leaders and local officials. On January 26, 2025, Biden's administration blocked the $14.9 billion merger, citing national security concerns, a decision that has drawn criticism from mayors in Gary, Indiana, and the Mon Valley in Pennsylvania, who argue that it threatens local economies and jobs [59009b74].
Vincent Trometter, writing for the St. Paul Pioneer Press, argues that Biden's decision undermines the principle of consent of the governed. Municipal leaders from Gary and the Mon Valley expressed their concerns about the economic ramifications of the decision in a letter to Biden on December 23, 2024. The Mon Valley and Gary Works plants produce 2.9 million and 7.5 million net tons of steel annually, respectively, which together account for nearly 12% of U.S. steel output [ab6dca98].
David McCall, head of the United Steelworkers, has faced accusations of spreading misinformation regarding the merger's potential impacts. Critics argue that the union's stance may not align with the interests of the workers it represents, raising questions about the broader implications for labor relations in the industry [59009b74].
In 2023, the U.S. imported 28.2 million net tons of steel, with Canada and Mexico contributing 11.1 million net tons. Trump's tariffs on steel imports have been a contentious point, with some arguing that they could worsen steel prices if the domestic supply is compromised by the closure of major plants [59009b74].
Trometter suggests that if Trump does not reverse Biden's decision, it would betray working-class voters who expect him to support domestic steel production. Trump's argument for reversing Biden's decision hinges on the belief that it could support working-class voters and align with his military and economic agenda. He contends that failing to reverse the decision would betray his voter base, particularly those in manufacturing-dependent regions [ab6dca98]. As the debate continues, the future of U.S. Steel and its role in the American economy remains uncertain, with significant implications for both workers and the industry as a whole.