‘There is no such thing as a non-political decision,’ Duquesne prof says of Biden’s U.S. Steel decision
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The intersection of politics and national security likely played a role in President Joe Biden’s decision to reject the proposed sale of U.S. Steel to a Japanese company, according to experts.
The White House announcement Friday morning to halt the nearly $15 billion deal to transfer ownership of the iconic Pittsburgh-based steel giant to Nippon Steel Corp. ends a yearlong debate that became a touchstone election issue in Pennsylvania.
Duquesne University political science professor Lew Irwin said it’s likely the political fallout of Biden’s decision will continue into the incoming administration of President-elect Donald Trump.
“There were clearly political implications to this,” Irwin said while also suggesting national security concerns were likely a key component in the decision-making process to prohibit the proposed sale.
“There is no such thing as a non-political decision that comes out of the White House or Congress.”
Federal law required Biden to make a decision on the proposed sale 15 days after the Committee of Foreign Investment in the United States announced Dec. 23 that it failed to make a formal recommendation regarding the future of the deal.
The committee operates as part of the U.S. Treasury Department and includes key U.S. Cabinet members such as the heads of the departments of Defense, State, Justice and Homeland Security, among others.
The committee split on recommending approval of the sale, which then required the president to make a final ruling.
Biden previously announced his opposition to the deal.
University of Pittsburgh at Greensburg associate political science professor Paul Adams said the national security concerns over the sale of U.S. Steel appear to have trumped politics, but the fallout from Biden’s decision could have a lasting impact, especially in Pennsylvania, where union support for Democrats has become shakier in recent years.
“The political ramifications from this will not so much impact Biden, but it does create confidence issues for organized labor. If the Trump administration ultimately rejects this deal, too, there could be political fallout for both parties,” Adams said.
During the presidential campaign last fall, Trump said he opposes the sale.
It was unclear Friday whether he has the authority to overturn Biden’s decision, which directed the U.S. Justice Department to oversee the abandonment of the proposed sale.
Trump has options, Irwin said.
“I won’t be surprised if this gets revisited, but not under these terms. When Trump takes office, he will get a steady stream of recommendations and advice, and this is something that could be renegotiated,” Irwin said.