Pennsylvania steelworkers are feeling a “gut punch” after President-elect Donald Trump said he would block the $14.9 billion sale of U.S. Steel to a Japanese company
On Monday, Trump reiterated a campaign promise, pledging on Truth Social to block the deal. He wrote: “I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan.”Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!”In the Pittsburgh area, where U.S. Steel employs about 3,500 people, the company’s sale to Nippon has proved popular.
Following Trump’s statement, Jason Zugai, the vice president of the United Steelworkers Local 2227 branch in West Mifflin, southeast of Pittsburgh, said: “For me, yeah, very frustrated with the news that came out last night. I didn’t expect that to come out, so that was like a gut punch.”
Those pushing for the deal point to Nippon’s pledge to, per The Guardian, “invest no less than $2.7 billion into its unionized facilities, introduce our world-class technological innovation, and secure union jobs so that American steelworkers at U.S. Steel can manufacture the most advanced steel products for American customers.”
Newsweek contacted Trump’s transition team and Nippon for comment via email.Not all steelworkers are in favor of the deal. The umbrella branch of United Steelworkers is working in opposition to the sale, with United Steelworkers President David McCall saying the deal would jeopardize the local economy. He added that he did not believe Nippon would protect the long-term employment of workers in the area.Speaking with local ABC affiliate WTAE, McCall said: “I don’t trust them. And more than that, the fact that they’re spending billions—or millions and millions of dollars in P.R. campaigns, as opposed to answering the needs of our members, concerns us a lot.”
He continued: “I think U.S. Steel in the Pittsburgh area, I think it’s an economic engine. Everybody understands that. Certainly, good paying family, supportive jobs, thousands of them. And so it’s important that we maintain steel, steelmaking here in the Mon Valley.”
In January, Senator Marco Rubio, a Republican from Florida and Trump’s nominee to lead the State Department, wrote an opinion piece in Newsweek arguing that the deal would be bad for national security.
However, West Mifflin Mayor Chris Kelly said on Tuesday, “The people that own and operate Nippon Steel are the real deal.”He added: “A billion-dollar investment that creates 5,000 additional jobs over a period of four to five years, and then it produces a better outcome, which means you’re going to employ more people, you’re going to use more American products and more steelworkers. I mean, it’s a no-brainer.”
