As President-elect Donald Trump returns to the White House, the future of America’s steel industry looms large. That is especially true in Pennsylvania, where Japan-based Nippon Steel entered into an agreement to buy U.S. Steel. This deal is fraught with risk for the United States.
Though U.S. Steel is the fifth largest steel producer in America, it is the 27th worldwide, while Nippon Steel is the fourth largest producer globally. Nippon Steel does operate some facilities in the U.S., though if they purchase U.S. Steel and choose to close the entire operation, it could increase demand for their parent company in Japan and risk our national security. Even President Joe Biden can’t deny the risks associated with U.S. Steel being foreign-owned, and in the waning weeks of his presidency, he used his executive authority to block the deal.
U.S. manufacturing started losing momentum in the early 1980s and Pittsburgh was hit especially hard between 1980 and 1983, when approximately 95,000 manufacturing jobs were lost. In the 1990s, globalization sparked another decline in manufacturing from which American industry would never fully recover. According to the Centre for Economic Policy Research, between 1990 and 2011, the U.S. manufacturing sector lost one out of every three jobs. Working people were desperate for a course correction, and by 2016, they were exhausted by the empty promises coming from the Democratic politicians they had elected.
“America First” was a much-needed rallying cry for the hardworking people wondering whether manufacturing jobs could be salvaged. Industrial nostalgia took hold of the country overnight in the shape of a political movement called MAGA–Make America Great Again. Trump, a loud-mouthed New York real estate mogul who had never been a politician, told hardworking people he valued them. These people, who were used to hearing that their jobs were dirty and undesirable, were suddenly being recognized and respected as the backbone of America.
The timing was right. Hardworking men and women were tired of politicians who made promises to union workers in front of cameras and then behind their backs, created policies that crushed the very jobs they promised to save. Trump was different. He fought unfair foreign competition and demanded that American companies restore and protect our factories. Wages rose for the first time in a decade. Trump elevated the worker in a manner they had not seen in decades.
Today, Pennsylvania is asking Trump to protect them and make sure the country’s security isn’t reliant on piecemeal parts outsourced to different countries. Perhaps he will find that Nippon Steel is the best choice, though it should be noted that the deal may sound sweeter than it is.
Back in September, Nippon Steel committed to invest $2.7 billion and refrain from laying off hourly employees through 2026. Since Biden blocked the deal, Nippon has committed to operating with no decrease in capacity for 10 years and an investment of $1 billion. That is a reduction from the initial investment promises and no commitment to avoid layoffs. Another warning for Trump should be the commitment Nippon Steel made to create “up to, nearly 5,000” temporary construction jobs–not permanent factory jobs.
A commitment of merely one more decade of steel production should also raise concern. Nippon Steel could easily choose to eliminate the U.S. operations and scrap the equipment to avoid a competitor taking market share. Steel is critical to American growth and security, not only for infrastructure, vehicles, and even the plastic water bottles you buy but especially our military equipment. The steel made in the U.S. builds naval ships, military aircraft, vehicles, and weapons. Outsourcing military equipment is dangerous especially if an alliance unexpectedly sours and prevents trade. The U.S. would be left without the ability to defend itself and that must never happen. The most powerful country in the world must be independent and self-sustaining.
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Sadly, we are at a crossroads for national security because years of poor government policies have prevented U.S. steel manufacturers from thriving. Regardless of the deal, Trump knows steel and the people know he will stand for them.
U.S. Steel has a nearly 125-year legacy of American operations and 10 more years is not enough. Steelworkers want a guarantee that their factory won’t become a shutdown victim of corporate greed or geopolitical strategy. Trump has promised a golden age and the hardworking people of Pennsylvania believe he will deliver it. For steelworkers, U.S. Steel will be Trump’s first test and there is no better man for the job than the leader of MAGA, a movement made for hardworking people.
Tudor Dixon is a former Republican gubernatorial nominee, executive in Michigan’s steel industry, breast cancer survivor, and working mother of four girls. She is currently the host of The Tudor Dixon Podcast.