(Sept 3): Vice President Kamala Harris joined President Joe Biden in declaring that US Steel Corp should remain domestically owned and operated, the latest headwind to the proposed sale of the company to Japan-based Nippon Steel Corp.

“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 (USW) 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.”

The 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’ comments add to the political maelstrom around the US$14.10 billion (RM61.64 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 neighbouring 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: US Steel, an iconic American company for over a century, is going to remain an American company,” Biden said. 

The USW welcomed Harris’ 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 US$1.3 billion in investments in US Steel’s unionised mills to try and win over the union, which has voiced concerns about longer-term prospects for workers once the current labour agreement expires in 2026.

Responding to reports of the Harris campaign’s planned announcement, US Steel highlighted that pledge and emphasised 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 on 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 “revitalise 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 last year, 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 on Monday for a US public holiday.

Debate over the takeover has intensified in the run-up to the November vote this year, 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 US, 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 travelling to Pittsburgh for the rally with Biden — their first joint campaign event since she became the presidential nominee. The Pittsburgh gathering included members of the USW and other major unions, according to a Harris campaign official. 

Uploaded by Tham Yek Lee