Biden’s Industrial Policy Is Just Politics by Another Name
The president’s opposition to Nippon Steel’s planned acquisition of US Steel has little to do with economics or national security.
Star-spangled steel.
Photographer: Luke Sharrett/Bloomberg
President Joe Biden signaled last week that his administration will oppose Nippon Steel’s proposed purchase of US Steel. As a matter of electoral politics, it’s easy enough to understand. As a matter of economic policy, however — not so much.
The merger requires approval from the Committee on Foreign Investments in the US, which examines such cross-border deals to ensure they are compatible with US national security. But the more relevant issue is that the steelworkers’ union wants the Biden administration to make the approval conditional on labor concessions that will help their members. Biden’s stance is a favor to his supporters.