US pols urge 'domestically owned' steel industry

“We write to express our belief that a strong, domestically owned and operated American steel industry is vital to our national security,” the letter stated.  

“If American steel production does not remain robust in peacetime, we risk unreliable supplies of critical steel products to the military in wartime,” the letter continued. “We urge you to consider this as the Department of Treasury assesses the national security risks in any review of foreign direct investment.”

The letter further questioned the logic of foreign ownership of US steel assets.

“Permitting foreign ownership or control of our steel industry risks ceding critical supply chains to foreign companies whose commercial interests may not always align with our national security interests,” the letter said.

It warned against entrusting US companies to foreign “companies that have repeatedly circumvented our trade laws and have dumped large volumes of steel onto our shores.”

The full text of the letter is here.

The letter comes as the USS/Nippon deal is still under governmental consideration. The Committee on Foreign Investment in the United States (CFIUS) is conducting a new review of the proposed transaction.

CFIUS is chaired by the Treasury Department, but it is not part of any single agency

Additionally, President Trump has said he is still opposed to a foreign firm owning the Pittsburgh-based steelmaker.

In recent decades, foreign firms have played an increasing role in the US steel industry, including companies like Luxembourg-based ArcelorMittal, India’s JSW Steel, and and Japan’s JFE, among many others.