Biden Decision on US Steel Deal Followed Divide in His Orbit

Pittsburgh: So, here’s the scoop. After the recent US elections, Biden was at a gathering with his allies, and guess who was watching closely? Arbitrage traders. They were all about the potential sale of US Steel to Japan’s Nippon Steel. The steelworkers’ union chief, David McCall, was there too, and everyone was wondering if he would have a chat with Biden.

The big question on everyone’s mind was whether Biden would support the sale or if McCall would manage to block it. This situation really showed the split in Biden’s camp. It was a classic case of how US policy can shift, especially when it comes to steel, which is seen as a strategic sector. In the end, Biden decided to veto the deal, citing national security concerns.

Traders were buzzing, trying to figure out what Biden was thinking. They were keeping tabs on both McCall and Nippon Steel’s Vice Chairman, Takahiro Mori. With millions on the line, everyone thought a decision was just around the corner, especially with the election drama wrapping up.

Biden’s administration made it clear they were against the deal pretty quickly. Even Trump jumped in, saying he’d block it if he got re-elected. Inside Biden’s team, there were mixed opinions. Some, like Secretary of State Antony Blinken, thought the deal could go through with some conditions. Others felt it was too risky.

The debate was intense. Some believed they could manage the risks, while others thought it was a bad idea. The union was worried that Nippon Steel’s promises were just empty words. McCall even pointed out that the company had clauses that could let them back out of commitments.

When Biden finally blocked the deal, he mentioned “credible evidence” of risks to national security, but didn’t go into details. He had been pretty vocal about his stance, promising that US Steel would stay American-run.

As the deal was being discussed, Nippon Steel tried to sweeten the pot with offers to invest in upgrades, but it didn’t sway the union. Local union leaders had mixed feelings about the deal, and even Pennsylvania’s Governor Josh Shapiro was caught in the middle, trying to facilitate talks without taking a clear side.

In the end, despite all the back-and-forth, Biden stood firm. He made it clear that he wouldn’t let the deal go through, and when he officially blocked it, it was a big moment for national security. The divisions within his team didn’t change his mind, and that was that.