America's Steel Backbone Faces Foreign Influence Under New Deal

Trump's U.S. Steel deal with Nippon Steel risks jobs, security, and climate goals, prioritizing corporate profit over American workers.

Foreign steel ownership threatens defense readiness and supply chain resilience. FactArrow

Published: June 13, 2025

Written by Thomas Giordano

A Broken Promise to America

President Trump's decision to greenlight Nippon Steel's acquisition of U.S. Steel, announced on June 13, 2025, hit like a betrayal. After campaigning on protecting American industries, he reversed a Biden-era block on the deal, allowing a foreign company to control a pillar of our economy. This move, tied to a national security agreement, raises a pressing question. How can we trust a policy that hands over a vital industry to foreign interests, even those of an ally like Japan?

U.S. Steel represents more than a corporation. Its mills have forged the backbone of America's infrastructure and defense for generations. Steelworkers in Pittsburgh and Gary have powered our nation through wars and economic booms. Yet, Trump's executive order risks placing their future under Tokyo's influence. The promised 'golden share' giving the U.S. veto power over key decisions offers little comfort when foreign boardrooms could shape production priorities.

Securing America's independence is paramount in this decision. It does not signify a rejection of Japan's friendship. In January 2025, the Committee on Foreign Investment in the United States (CFIUS) warned that the deal threatened national security, prompting Biden's prohibition. Trump's about-face, swayed by Nippon's $14 billion investment pledge, overlooks the dangers of foreign control over a critical supply chain. Geopolitical shifts could alter Japan's priorities, leaving America vulnerable. We need leaders who prioritize our sovereignty.

Workers Deserve Better

The United Steelworkers union fiercely opposed this deal, demanding firm job protections. Nippon's promises to maintain Pittsburgh's headquarters and avoid layoffs sound appealing, but history warns otherwise. The 1980s steel crisis, fueled by imports and weak oversight, devastated communities. Foreign takeovers often promise stability only to cut jobs later. Why place workers' livelihoods at the mercy of corporate assurances?

Trump claims this deal will create 70,000 jobs, but those figures rely on Nippon's plans, not binding commitments. A domestic alternative from Cleveland-Cliffs, which prioritized workers, was dismissed. By choosing a foreign buyer, Trump betrays the labor communities he vowed to protect. The United Steelworkers called CFIUS the 'last line of defense' for workers, yet this deal weakens that shield, leaving families uncertain about their future.

Beyond jobs, Trump's tariff policies, which frame this deal, hurt everyday Americans. Economists who view tariffs as a regressive tax note that 2025 tariffs will cost households $1,200 annually, per the Tax Foundation, raising prices on cars, appliances, and more. Working families bear the brunt while corporations like Nippon reap benefits. This deal, sold as a win for industry, tightens the economic squeeze on the middle class.

Security and Sustainability at Risk

Steel fuels our defense—tanks, ships, and bridges depend on it. Foreign control, even by an ally, creates risks. Intelligence reports show how adversaries exploit supply chains, like Russia's 2006 gas cuts. Japan's alignment today doesn't guarantee future cooperation. If a crisis demands rapid steel production, foreign priorities could hinder our response. Why take that chance with a resource so essential to our safety?

Biden's 2022 CFIUS reforms emphasized supply-chain resilience, a principle Trump's decision ignores. The 2018 Foreign Investment Risk Review Modernization Act strengthened scrutiny of critical industries, reflecting bipartisan agreement on protecting our industrial base. Trump's focus on Nippon's investment prioritizes corporate gains over long-term security. Keeping U.S. Steel American would ensure control over a vital asset, free from foreign sway.

Climate goals also suffer. Steel production generates significant emissions, and policies like the Inflation Reduction Act link subsidies to cleaner methods. Nippon's upgrades may improve plants, but without strict environmental commitments, they may prioritize profits over America's net-zero targets. Domestic ownership would better align steelmaking with security and sustainability, serving both our defense and our planet.

Building a Stronger Future

A better path exists. Retaining U.S. Steel under American control, as Cleveland-Cliffs offered, would protect jobs and supply chains while advancing climate goals. Federal investments, like those in the CHIPS and Science Act, could modernize plants like Mon Valley without foreign reliance. Why trade our industrial strength for promises when we can invest in our own capacity?

Supporters of the deal argue Nippon's $14 billion shows tariffs attract allied capital, creating jobs and upgrading facilities. Yet, this view dismisses the risks of foreign control and the consumer pain from tariffs. A 2025 Chicago Council poll reveals 74 percent of Democrats and 56 percent of independents prefer global trade over protectionism, tired of policies that raise costs while favoring corporations. This deal exposes the flaws in Trump's approach.

America demands policies that empower workers, secure our defenses, and protect our planet for generations to come.