The vice president recently hit the nail on the head, as he so often does. “The reason the failed establishment hates President Donald J. Trump is because he chooses his words carefully and, more importantly, is much more focused on *doing*,” wrote JD Vance on his X account.
That care was evident recently when the president talked about the future of the American steel industry. “Nippon is going to be doing something very exciting about U.S. Steel,” Trump said. “So, they have agreed to invest heavily in U.S. Steel.” Trump didn’t need to say more. His behind-the-scenes intervention has worked out perfectly, and Donald Trump has saved U.S. Steel and perhaps the Japanese economy in the bargain. Not bad.
Trump’s tough talk during the campaign has leveraged a better deal for American workers and the very voters in Pennsylvania who voted for him to win that state. While former president, Joe Biden, dug in and pledged to block a deal, President Trump has used his leverage to move toward a deal that satisfies all involved. President Trump has addressed concerns about national security and jobs by working with both parties to find a middle ground.
Let’s step back and remember what’s been going on. Nippon Steel is a Japanese company, which means it is based and operated in a dangerous neighborhood. It needs American markets and American military support to fend off a rising China. On the U.S. side, Americans need to wean themselves off of imported steel from China to lessen reliance on an economic and strategic adversary.
U.S. Steel is struggling and in need of help. It was once the most powerful company in the world. Rooting for the Yankees, it was said, was like rooting for U.S. Steel. Both won, year in and year out. But it hasn’t been doing well lately, and it needs an infusion of innovative technology to keep going. That being said, I still hate the NY Yankees and will never root for them because I am a die-hard Red Sox fan.
Nippon Steel is just the investor to deliver those innovations. Its breakthrough technologies, which include hydrogen injection technology for blast furnaces, high-grade steel production in large-size electric arc furnaces, and hydrogen use in the direct iron reduction process, can help U.S. Steel improve its operations for decades to come.
The Japanese company wants to be here in the U.S. because it already is here, and in many other countries as well. Nippon Steel has manufacturing facilities in Japan and 15 other countries, including a 40-year successful track record of operating safe and profitable mills in the United States. It knows how good American workers are.
As such, Nippon is positioned to build a good relationship with the unions that represent U.S. Steel’s employees. It has a long and productive history with the United Steelworkers (USW), the organization that represents approximately 620 employees at its Wheeling-Nippon Steel and Standard Steel facilities. It will also be union-friendly when it participates in factories in Pennsylvania and Ohio.
For example, Nippon has committed to honor all collective bargaining agreements and recognize the USW as the bargaining representative for USW-represented employees. There will be no layoffs of USW-represented employees because of any transaction. Nippon Steel will also maintain U.S. Steel’s current compensation and benefits programs for its workers.
This investment by a Japanese company can enhance U.S. national security by strengthening the domestic steel industry. It would also secure critical supply chains for the steel industry’s customers and suppliers, making these supply chains even more resilient.
Better American steel will enhance other vital American industries, including American automotive manufacturers. Nippon Steel is committed to helping both U.S. Steel’s existing business and expanding its footprint and product offerings. Nippon’s investment is aimed at growing U.S. Steel into the best, strongest, and cleanest steelmaker in the United States, providing high-quality American-made steel products to U.S. customers in critical industries.
The two companies have been in talks for a long time, and the leaders of both want to move forward with a deal. So do many U.S. Steel employees, who recognize the need to work with partners to improve their products and practices.
The Nippon Steel-U.S. Steel partnership can promote domestic steel manufacturing and ensure that Americans aren’t reliant on Chinese steel. Donald Trump knows a great deal when he sees one and he knows a great deal when he makes one. He has certainly succeeded in this case.
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- Brian Darling is former Counsel for Sen. Rand Paul (R-KY).
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