Lawmakers criticize Nippon Steel"s acquisition of U.S. Steel deal

Lawmakers from both major political parties, including President Joe Biden and former President Donald Trump, have expressed strong opposition to Nippon Steel's proposed acquisition of U.S. Steel for $15 billion. The Committee on Foreign Investment in the United States (CFIUS), chaired by Treasury Secretary Janet Yellen, is evaluating whether the deal poses a national security risk. Concerns have been raised that the acquisition could lead to an influx of cheap steel from China into the U.S. market. Business groups, such as the U.S. Chamber of Commerce, have warned that political interference in the CFIUS process could deter future foreign investments, which currently exceed $5 trillion in the U.S. economy. They argue that the committee should not be used for political agendas unrelated to national security, as this could harm the investment climate and American workers. U.S. Steel's CEO, David Burritt, has indicated that if the acquisition fails, the company may have to close mills or relocate its headquarters outside Pennsylvania, which would have significant implications for local employment and the economy. The business groups have urged that the CFIUS process should remain focused on genuine security concerns rather than becoming a tool for political maneuvering. In response to CFIUS's concerns, Nippon Steel and U.S. Steel submitted a detailed 100-page letter arguing that the deal would actually enhance U.S. steel production capabilities. The outcome of this acquisition remains uncertain as the White House has signaled a likely move to block the deal.