LThe poison of division is affecting no sector of American life. From music to power generation, in an era of political polarization, you have to choose your side. But there are two issues that transcend partisan choices: fear of China and… opposition to the acquisition of US Steel by its Japanese competitor Nippon Steel.
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On a campaign visit to Pennsylvania, Democratic presidential candidate Kamala Harris said the American steelmaker should be “American-run and American-owned”. In doing so, she has simply followed in the footsteps of her mentor, President Joe Biden. On the Republican side, Donald Trump has also confirmed that he will block this takeover as soon as he comes to power.
The steel industry, like airlines, has long been considered an essential instrument of sovereignty by countries. The power of a nation was measured by the height and number of its blast furnaces. US Steel has been at the heart of the American capitalist adventure for a century. But as was the case in Europe, steel production has become commonplace with the opening of markets and the rise of major customers such as the automobile and construction industries. From restructuring to restructuring, US Steel has become a marginal player on the global scale and third in the United States.
Influential union
Nippon Steel promises to invest $2.7 billion (€2.4 billion) to modernize the company. But that is not enough for the United Steelworkers (USW) union, which represents 11,000 US Steel employees (out of 83,000). It fears layoffs in traditional strongholds and has openly spoken out in favor of the acquisition by Ohio competitor Cleveland-Cliffs. USW, which has diversified into education and health care, is very influential. Its president, David McCall, is a supporter and friend of Joe Biden. And Pennsylvania, a key state for the next election.
For the industrial symbol and electoral calculations, it is therefore necessary to oppose the Japanese offensive. Even if it means falling out with its main ally in Asia and at the risk of increasing prices through tariff barriers, which will penalize the rest of the economy. Wall Street Journal awarded this opposition the palm of “The dumbest economic idea of the presidential campaign”.
In France, at the time of the takeover bid by the Indian Mittal for Arcelor in 2006, we were talking about “business grammar” to castigate the operation. The battle for steel has changed its vocabulary, but not its political sensitivity.
