The controversy surrounding US Steel highlights a new interpretation of national security. Last summer, US Steel was contemplating selling itself due to the decline in American steelmaking, largely attributed to foreign competition. Traditional integrated producers like US Steel have been surpassed by ”mini-mills” operated by non-union workers and powered by electricity. Cleveland-Cliffs, a rustbelt rival, made an offer to buy US Steel, but was rejected. Eventually, Nippon Steel, Japan’s largest steelmaker, agreed to purchase US Steel for $15 billion in cash, sparking concerns about national security and antitrust issues. The deal has drawn criticism from various quarters, including President Joe Biden’s economic adviser, steelworkers’ union, and Cleveland-Cliffs’ CEO. The situation has become a prime example of America’s protectionist tendencies, with calls for scrutiny and concerns about the impact on national security.
Source from www.economist.com
Published on 2024-02-15 10:59:41