Trump's Ex-Secretary Of State Mike Pompeo Backs Nippon Steel's $14.9B Acquisition Of US Steel Citing National Security Concerns

Former U.S. Secretary of State Mike Pompeo has thrown his weight behind Japanese steel giant Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel, arguing that blocking the deal would undermine America's national security. Pompeo, who served under President Trump, penned an op-ed in The Wall Street Journal, stating that preventing the acquisition would reinforce China's steel dominance and fuel false narratives about U.S. hypocrisy.

Nippon Steel announced its intention to acquire U.S. Steel last year, but the deal has faced resistance from lawmakers and the United Steelworkers union. Pompeo, however, believes that the acquisition would allow the U.S. to maintain robust and competitive domestic steel production, enhancing national security and better serving steelworkers.

Pompeo argues that blocking the deal would be a gift to the Chinese Communist Party's propaganda machine, as it would be perceived as proof of a troubled U.S.-Japan relationship. He also contends that the acquisition would allow the U.S. to produce steel domestically, which is crucial for national security.

However, the deal has faced scrutiny from the United Steelworkers union, which has expressed concerns about Nippon Steel's history of strategically importing both substrate and finished products into the U.S. and other countries. The union believes that this practice has negatively impacted American steelmaking and steelworkers.



Pompeo's stance on the acquisition aligns with his previous views on foreign ownership of U.S. companies. In 2023, he criticized the proposed acquisition of U.S. Steel by Cleveland-Cliffs, stating that "we cannot allow foreign companies to buy up our strategic industries." However, in his recent op-ed, Pompeo emphasizes the national security implications of the deal, suggesting a shift in his perspective on foreign ownership.

The potential economic benefits and drawbacks of the acquisition for both the U.S. and Japan are significant. For the U.S., the deal could lead to increased domestic steel production, enhancing national security and reducing dependence on foreign imports. However, there are concerns about increased foreign control over a critical U.S. industry and potential job losses due to consolidation. For Japan, the acquisition could provide access to U.S. markets and resources, but it may also face resistance from U.S. labor unions and political opposition.

In conclusion, Mike Pompeo's support for Nippon Steel's acquisition of U.S. Steel highlights the national security implications of the deal. While the acquisition could bring significant economic benefits to both countries, it also raises concerns about foreign control and potential job losses. As the deal moves forward, it will be crucial for stakeholders to weigh the potential benefits and drawbacks and consider the long-term implications for the U.S. steel industry and national security.