Harris says US Steel should remain American owned and run

Josh Wingrove
4-min read
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(Bloomberg) — Vice President Kamala Harris joined President Joe Biden in declaring that United States Steel Corp. (X) should remain domestically owned and operated, the latest headwind to the proposed sale of the company to Japan-based Nippon Steel Corp (NPSCY).

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“US Steel is an historic American company, and it is vital for our nation to maintain strong American steel companies,” Harris said during a Labor Day event with unions in Pittsburgh, home to both US Steel and the United Steelworkers union, which has opposed the sale. “I couldn’t agree more with President Biden — US Steel should remain American-owned, and American-operated. And I will always have the backs of America’s steelworkers.”

US Steel shares fell as much as 5% Tuesday in New York to its lowest intraday price since June 26.

Harris’s statement is her first on the proposed deal, and aligns with Biden, who has also pledged that US Steel will remain domestically owned, though he’s stopped short of outright blocking it amid a security review. Republican nominee and former President Donald Trump has also called for the transaction to be blocked.

It’s not clear whether a decision on the takeover will land on Biden’s desk or that of his successor — or even if it will proceed at all. Still, Harris’s comments add to the political maelstrom around the $14.1 billion deal — rooted in Pennsylvania, one of the election’s foremost battlegrounds. The state’s two senators have been among the most vocal in opposing the sale, as has Senator JD Vance of neighboring Ohio, who is Trump’s running-mate.

Biden, speaking before Harris at the same event on Monday, reiterated his stance. “I made it clear the last time I was in Pittsburgh: United States Steel, an iconic American company for over a century, is going to remain an American company,” he said.

The United Steelworkers welcomed Harris’s opposition to the deal.

The vice-president’s comments on Monday “make it clear that she understands the crucial role of the steel industry, not only when it comes to safeguarding our national security, but also to ensuring a brighter future for the workers and communities that depend on good, union jobs,” USW leaders said in a statement.

Nippon Steel announced last week an additional $1.3 billion in investments in US Steel’s unionized mills to try and win over the union, which has voiced concerns about longer-term prospects for workers once the current labor agreement expires in 2026.

‘Unwavering Commitment’

Responding to reports of the Harris campaign’s planned announcement, US Steel highlighted that pledge and emphasized that it remains committed to the deal.

Nippon Steel’s promise to invest is “evidence of its unwavering commitment to US Steel and all of our stakeholders,” not only to complete the transaction but also to protect and grow the company, Chief Executive Officer David Burritt said in a written statement Monday. “US Steel will be a much stronger company as a result of the transaction and these investments.”

Nippon Steel said in a statement that its purchase would “revitalize the American steel rust belt, benefit American workers, local communities, and national security in a way no other alternative can.” The company added that it believes “a fair and objective regulatory review process will support this outcome, and we look forward to closing the transaction as soon as possible.”

US Steel shares surged when Nippon’s bid was announced in December, before giving up much of those gains when Trump and Biden voiced opposition. The stock then outperformed peers as Biden withdrew from the electoral race, on bets a Harris-led ticket may put up fewer obstacles for getting the deal done. Trading was closed Monday for a US public holiday.

Debate over the takeover has intensified in the run-up to the November vote, though there’s little sign that the deal will conclude before then. It remains subject to a review by the Committee on Foreign Investment in the United States, a panel chaired by the Treasury Secretary that more frequently targets US adversaries like China.

The status and timeline of that process are not clear. Biden’s administration has deferred to the ongoing review process so far.

Harris visited Michigan earlier on Monday for a Labor Day event, before traveling to Pittsburgh for the rally with Biden — their first joint campaign event since she became the nominee. The Pittsburgh gathering included members of the United Steelworkers and other major unions, according to a Harris campaign official.

—With assistance from James Attwood and Joel Leon.

(Updates US Steel share price in third paragraph.)

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