Biden’s Steel Dilemma: How Swing State Politics Are Sinking a Global Deal

welcome back to asterisk Insight USA asterisk where we break down the most important geopolitical and economic developments shaping our world today in today's video we're diving into a major story that's making headlines across the country the intersection of swing state politics and a Global Steel deal and how it's impacting the US economy as the Biden Administration nears a decision to block the proposed acquisition of the US steel the conversation around National and economic security is being overshadowed by Presidential politics for the past 3 years the Administration has pushed its FR Shoring policy designed to Foster closer ties with us allies like Europe and Japan in order to contain Global Powers such as China and Russia but when it comes to Pennsylvania that policy seems to hit a wall the administration is considering blocking the acquisition of Pittsburgh based us Steel by Japan's nipon steel while National Security and economic concerns are Central to this debate what seems to be driving the decision is an even stronger Force presidential Politics the timing couldn't be more critical with the presidential election on the horizon and swing state Pennsylvania could play a decisive role many legal experts and economists warn that blocking this $15 billion transaction could set a dangerous precedent they argue it may make international corporations think twice before investing in the US as it would signal a shift away from America's long-standing policy of open investment Christopher Johnstone an expert on international relations says this move represents pure protectionism and undermines the administration strategy of strengthening alliances among friendly Nations yet Administration officials including treasury secretary Janet Yellen have supported deepening economic ties with us allies to create more resilient Supply chains these principles however seem to be taking a backseat as election year politics come into play the Steel Workers Union has been vocally opposed to the nepon steel deal fearing it could jeopardize pensions and lead to layoffs despite promises from nipon to invest in Pennsylvania and protect jobs the union is an influential political Force especially in key swing States like Pennsylvania and Ohio and several Senate Democrats are urging the administration to block the deal including Ohio Senator shered Brown who's in a tough re-election fight with polling showing Pennsylvania as a toss-up State between vice president CA Harris and former president Donald Trump the support of the Steel Workers Union is crucial both Democrats and Republicans see protecting America's steel industry as a Surefire way to win votes Scott linicom a trade expert says in an election year a few thousand votes could swing the entire presidential election if both parties believe they need to be rapidly protectionist to win the White House that's exactly what we'll see but what are the long-term implications the committee on foreign investment in the United States CFI us is reviewing the nipon deal for potential risks but as of now no final recommendation has been made some speculate that the Biden Administration May block the deal before November following the statements from both Biden and Harris along with Trump that us steal should remain M under American ownership critics argue that blocking this steal goes against the spirit of the administration's friend Shoring approach and could cause lasting damage former Commerce Secretary Wilber Ross pointed out that nippon's technology could actually benefit us steel and that National Security concerns could still be addressed even if the deal goes through do the bigger question is how this will play out in Pennsylvania some local officials believe that blocking the deal would have disastrous consequences for the state if us steel PS out of Pennsylvania thousands of jobs could be lost and the state reputation as a business-friendly environment would take a hit Sam DeMarco 3 alagan County councilman and Republican party chairman warns that this move signals we're not open for investment and could scare away other businesses from setting up in the region dot at the heart of this issue is whether the political cost of allowing the deal to go throughout weighs the economic risk of blocking it only time will tell what impact this decision will have on both the 202 for election and the future of America's steel industry that's all for today on asterisk inside USA asterisk we'll continue to follow this story closely especially as it ties into the critical political landscape leading up to the next election be sure to subscribe to our channel for more updates on the latest developments in US politics global trade and economic policy thanks for watching and we'll see you in the next video