May 12, 2025 By Tim Murphy 5 min read

As a former congressman representing Southwestern Pennsylvania and Chairman of the Congressional Steel Caucus, I’ve spent my career fighting for American steel and the men and women who forge it. That’s why I support the proposed acquisition of U.S. Steel by Nippon Steel. This partnership isn’t a threat – it’s an opportunity. Unfortunately, political gamesmanship risks sinking a deal that would revitalize our industry, strengthen ties with a critical ally, and protect American jobs.

Since the merger was announced in December 2023, the political response has often reflected the pressures of a high-stakes policy debate rather than a clear-eyed look at the facts. With the United Steelworkers union top leadership opposing the deal, it’s no surprise that national elected leaders – including former President Biden and President Trump – have raised concerns. But at this stage, the focus should be less on political momentum and more on what truly strengthens American industry and advances our national interest.

The Committee on Foreign Investment in the United States (CFIUS), a nonpartisan body created to assess genuine security threats from foreign investment, is being used as a political shield. CFIUS recently issued a letter raising concerns about a global steel glut and trade issues – arguments that drift far from its national security mission. As national security experts like former CFIUS official Rick Sofield and attorney Michael Leiter have pointed out, these are not valid reasons to block the deal.

Japan is not a geopolitical rival. It is a trusted democratic ally, our largest foreign investor, and a nation that holds a significant portion of U.S. debt. Unlike adversarial states like China, Japan respects our intellectual property, operates under market-based rules, and pays higher wages to workers. Its investments are long-term, transparent, and stabilizing. Rejecting this deal sends the wrong message not only to Japan, but to South Korea, Australia, and other partners whose $165 billion and $106 billion in investments strengthen our economy.

This deal is also exactly the kind of industrial partnership that Trump has long advocated: steel made in America, by American workers, in revitalized factories. Rather than offshoring jobs, Nippon Steel wants to modernize our aging infrastructure, protect domestic employment, and breathe new life into communities that have been economically stagnant for decades.

As Washington Post columnist Selina Zito recently noted, even local labor leaders recognize the value of this investment. “We support the merger,” said Don Furman, a union official representing workers in western Pennsylvania. “We are getting investment in our community that hasn’t happened in decades.” That sentiment reflects a key truth: this deal isn’t about selling out – it’s about building up.

We’ve seen what happens when America adopts a “cheaper is better” trade policy. We allowed foreign producers to dominate manufacturing in exchange for lower prices on consumer goods. The short-term savings came at a steep cost: shuttered plants, lost jobs, declining communities, and the erosion of a skilled workforce. It was myopic policy that ignored the long-term damage.

When factories sit idle, with peeling paint and rusted-out machinery, the harm goes beyond economics. Our national defense suffers. It takes years to rebuild manufacturing capacity, train specialized workers, and construct advanced facilities. In the meantime, state-supported steelmakers in China – unburdened by labor rights, environmental regulations, or transparency – markets with cheap products, undercutting U.S. competitiveness.

And while we import those goods, the U.S. spends hundreds of billions annually for our Navy to police ocean shipping lanes and guarantee their arrival. That strategic cost rarely shows up on the price tag but is very real – and must be factored into any debate about foreign supply chains.

Blocking this deal doesn’t protect American steel. It protects a failed status quo and discourages the kind of foreign direct investment that keeps our industries globally competitive. In 2023 alone, manufacturing FDI grew by $58.6 billion in the U.S.- jobs, wages, and innovation that would not exist without trusted global partners.

Let’s also be honest about the political risks of overreaching. The Biden administration initially supported the merger through Ambassador Rahm Emanuel before reversing course. That kind of flip-flopping undermines trust with allies and sets a dangerous precedent. If CFIUS becomes a tool for political convenience, future leaders – Democrat or Republican – could weaponize it to punish enemies or reward friends, eroding its credibility and purpose.

We must resist the urge to play short-term politics with long-term prosperity. Approving the Nippon Steel-U.S. Steel merger will send a clear message to the world: America is open to investment from allies, committed to rebuilding its industrial strength, and confident enough to lead in a competitive global economy.

Let’s not miss this opportunity. We should welcome this partnership – not just for the sake of steel, and jobs but for the future of America’s international leadership.

Former U.S. Rep. Tim Murphy represented Southwestern Pennsylvania in Congress from 2003 through 2017.