President Donald Trump has delivered a big win for America. The imminent linkage of Pittsburgh-based U.S. Steel and Nippon Steel will benefit American workers, America's steel industry, and America's strategic alliance with Japan vis-a-vis China. Thanks to President Trump's Executive Order clearing the path for this deal, America's steel industry will have the investment and modernization needed to compete internationally in this highly strategic sector.
As I've long argued, the prospect of Japan - a close American ally with a stable democracy and market economy - making a major investment in America should be welcomed. Adversaries like China are doing their best to undermine our economy and dominate critical industries. To prevail, we need to expand our manufacturing base in concert with nations that share our values and interests.
Unlike President Biden - who put politics over delivering results that benefit the American people - President Trump rolled up his sleeves and got the job done. Back in January, the Biden administration blocked this deal from going through, citing "national security" concerns. But why would major investment by one of America's closest allies pose a threat to the American people? In reality, this was a politicized decision designed to curry favor ahead of the 2024 election.
TRUMP GREENLIGHTS U.S. STEEL DEAL, PROMISING $11B INVESTMENT AND 100,000 AMERICAN JOBS
President Trump saw through all this, as did the steelworkers who knew that, without significant new investment, their steel mills would soon close. This acquisition will bring a world-leader in steel technology and manufacturing expertise to American operations and enable U.S. Steel to make the upgrades it needs to thrive. Nippon has promised to commit $14 billion to modernizing steel mills to make these production centers more competitive.
Without this investment, the company would have had no choice but to close these facilities and lay off thousands of workers. Instead, they are creating new jobs and ensuring that the mills will be able to operate for decades to come.
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This has the potential to unleash incredible new levels of American productivity. It's thought that the deal will help Nippon-US Steel to move toward 100 million metric tons of global crude steel capacity and significantly increase its competitive edge in the international market. What's more, allowing this deal to go forward also sends the right signals to Japanese and other international investors who may have been discouraged from direct investment in the U.S.
As President Trump has made clear, this isn't a foreign takeover - it's a strategic partnership with American control and oversight. The administration has helped to secure a favorable agreement in which U.S. voices are represented and our interests are protected. While the details are still emerging, the terms that have been discussed publicly would guarantee the appointment of an American CEO, majority American board membership, and government approval on certain key areas of activity.
As someone who spent years defending America's interests on the world stage, I've seen firsthand how important - and mutually beneficial - our economic partnerships with allies like Japan are to keeping America prosperous and strong. A thriving steel industry powered by allied investment and American workers makes us stronger; a shuttered steel industry makes us vulnerable.
This is what "America First" looks like in practice - smart partnerships that benefit American workers while strengthening our alliances and our economy.
It's a win for America, and America has President Trump to thank for making it happen.
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