Go to U.S. Steel’s website and it looks like a done deal: Nippon Steel, the fourth largest steel producer in the world, is already the assumed new owner of America’s oldest, most storied steel company, formed in 1901 when J.P. Morgan financed the merger of three steel companies. Charles Schwab became its first CEO. The steelmark logo, created by the company, adorns the helmet of the Pittsburgh Steelers football team.
Now, Japan’s national champion steel maker, Nippon, put a $14.1 billion bid on the company late last year in an all cash deal. That bid was accepted by the company’s board on Dec. 18. That acquisition is now under review by the Committee on Foreign Investment in the United States (CFIUS).
A CFIUS review can take anywhere from several weeks to several months to complete.
Many legislators have come out against Nippon buying U.S. Steel. They include leaders from both parties, including those from U.S. Steel’s home state – Sens. Bob Casey (D-PA) and John Fetterman (D-PA). In aletter to Treasury Secretary Janet Yellen, the Senators said the Nippon deal would be “a step backwards” for national security.
Republican senators JD Vance (R-OH), Josh Hawley (R-MO), and Marco Rubio (R-FL) requested the deal be blocked in a separateletter to Yellen, also citing national security as their primary concern.
Nippon has 9 joint ventures in the U.S. But unlike Nippon, Arcelor has only once been subject to an anti-dumping charge. It was in 2018-19 for steel concrete reinforcing bar, or rebar, made in Mexico. They were subject to a 4.93% tariff.
Nippon has been charged in at least 10 anti-dumping cases over the last 10 years. Anti-dumping and countervailing duties are assessed by the Enforcement and Compliance Office at the International Trade Administration of the Department of Commerce. They are issued after an investigation by Commerce following a complaint by a domestic producer that their overseas competitor is selling products below market value, robbing them of market share in their own home market, and – in a worse case – forcing them into bankruptcy.
Nippon’s (Sordid) History With the United States
Nippon has a fairly long history here. Some 4,000 people are employed here by Nippon. Around 21,803 people work for U.S. Steel
Nippon fully owns Wheeling-Nippon Steel located in West Virginia. They own another historic Pennsylvania company – Standard Steel LLC – acquired in 2011. This company has been around since 1795 and makes steel wheel and axle rods for trains and subway cars.
Nippon Steel Pipe America in Indiana has always been wholly owned by Nippon Steel. It was created in 1989.
They are in as many joint ventures across the steel product line here in the U.S. as they are in mainland China – nine in total.
But between Japan’s production and its JVs in China, Nippon’s steel capacity tops 89 million metric tons of both hot and cold flat-rolled steel. Those rolled steel products are the first items to be made from the semi-finished steel that comes out of the blast furnace of a steel mill. From there, they can be made into any number of things, from tubing and steel plates for construction, to rebar and automotive sheet used to make cars and trucks.
U.S. steel production is around 100 million metric tons, so between Nippon Steel in Japan, its JVs in China, plus its new U.S. Steel acquisition, if approved, they will have another 20 million metric tons on top of their 89 million. Nippon and all of its hot and cold rolled steel capacity will be as big as the entire U.S. steel industry.
None of Nippon’s China JVs have been accused of dumping products into the U.S. Their Taiwanese subsidiary, Nippon Steel Stainless Precision Co., was under investigation by Commerce in 2023 for dumping stainless steel sheet and strip coils. But were granted an exemption, meaning they were not found to be dumping.
10 Years. 10 Cases With High AD/CVD Charges.
Although this list is much longer, here is a look at Nippon getting caught in the anti-dumping cross hairs year after year, going back to 2014.
May 2023, final review for the 2020-2021 period, Nippon Steel hit with 7.72% anti-dumping tariffs for hot-rolled steel. Commerce says Nippon is still selling here below market value.
May 2021, final review for corrosion resistant steel products shipped between 2018-2019, from Nippon in China. Company was subject to 199.43% tariffs in a preliminary ruling and did not ship after that decision to avoid the tariffs.
Aug 2019, final review for the 2017-2018 period on nickel plated flat rolled steel products. Commerce elected to keep previous anti-dumping duties in place, saying if they removed them “Japan would likely continue dumping.” The case was filed by Tata Steel subsidiary Thomas Steel Strip in the U.S. Duties of more than 70% remained.
June 2019, final review for 2017-2018 flat rolled steel from Nippon Steel in Japan, imposed dumping duties of 7.64%.
Dec 2018, final review for the 2016-2017 period for nickel plated flat rolled steel, 77.7% anti-dumping duties imposed.
May 2016, final review on cold rolled steel sold from Japan between 2014-15, 71.35% duties.
April 2014, final review on nickel plated flat rolled steel for the 2013-2014 period, Nippon Steel and Sumitomo Metal Corporation, which it owns, were hit with 77.7% duties for selling here at less than fair value.
In the early 1980s, Japanese steel company Mitsui was criminally convicted on dumping charges. In 2004, Congress repealed the criminal offense of dumping after the World Trade Organization ruled it illegal.
Some local steel executives have said on background that Nippon has been as much a hindrance to the growth of the U.S. still industry with its perennial dumping of steel products onto the domestic market, as it has been a help. Japan has been an ally in going after China in the World Trade Organization regarding steel overproduction. None of that has worked anyway.
The Organization of Economic Cooperation and Development estimated excess capacity globally to be approximately 625 million metric tons in 2020, for example. The large majority of capacity is in China, which accounts for over half of global steel output. The United States accounts for approximately 4%.
Global excess steel capacity is increasing again, according to the 2023 report by the Global Forum on Steel Excess Capacity.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
US Steel’s Potential New Buyer Riddled With Decades Long Anti-Dumping Charges
Go to U.S. Steel’s website and it looks like a done deal: Nippon Steel, the fourth largest steel producer in the world, is already the assumed new owner of America’s oldest, most storied steel company, formed in 1901 when J.P. Morgan financed the merger of three steel companies. Charles Schwab became its first CEO. The steelmark logo, created by the company, adorns the helmet of the Pittsburgh Steelers football team.
Now, Japan’s national champion steel maker, Nippon, put a $14.1 billion bid on the company late last year in an all cash deal. That bid was accepted by the company’s board on Dec. 18. That acquisition is now under review by the Committee on Foreign Investment in the United States (CFIUS).
A CFIUS review can take anywhere from several weeks to several months to complete.
Many legislators have come out against Nippon buying U.S. Steel. They include leaders from both parties, including those from U.S. Steel’s home state – Sens. Bob Casey (D-PA) and John Fetterman (D-PA). In a letter to Treasury Secretary Janet Yellen, the Senators said the Nippon deal would be “a step backwards” for national security.
Republican senators JD Vance (R-OH), Josh Hawley (R-MO), and Marco Rubio (R-FL) requested the deal be blocked in a separate letter to Yellen, also citing national security as their primary concern.
Why?
Foreign companies have operated in the steel industry in the U.S. for years. ArcelorMittal was here. Cleveland Cliffs bought out their flat rolled steel mills in 2020. Arcelor still has a steel tubing making factory in Ohio.
Nippon has 9 joint ventures in the U.S. But unlike Nippon, Arcelor has only once been subject to an anti-dumping charge. It was in 2018-19 for steel concrete reinforcing bar, or rebar, made in Mexico. They were subject to a 4.93% tariff.
Nippon has been charged in at least 10 anti-dumping cases over the last 10 years. Anti-dumping and countervailing duties are assessed by the Enforcement and Compliance Office at the International Trade Administration of the Department of Commerce. They are issued after an investigation by Commerce following a complaint by a domestic producer that their overseas competitor is selling products below market value, robbing them of market share in their own home market, and – in a worse case – forcing them into bankruptcy.
Nippon’s (Sordid) History With the United States
Nippon has a fairly long history here. Some 4,000 people are employed here by Nippon. Around 21,803 people work for U.S. Steel
Nippon fully owns Wheeling-Nippon Steel located in West Virginia. They own another historic Pennsylvania company – Standard Steel LLC – acquired in 2011. This company has been around since 1795 and makes steel wheel and axle rods for trains and subway cars.
Nippon Steel Pipe America in Indiana has always been wholly owned by Nippon Steel. It was created in 1989.
They are in as many joint ventures across the steel product line here in the U.S. as they are in mainland China – nine in total.
But between Japan’s production and its JVs in China, Nippon’s steel capacity tops 89 million metric tons of both hot and cold flat-rolled steel. Those rolled steel products are the first items to be made from the semi-finished steel that comes out of the blast furnace of a steel mill. From there, they can be made into any number of things, from tubing and steel plates for construction, to rebar and automotive sheet used to make cars and trucks.
U.S. steel production is around 100 million metric tons, so between Nippon Steel in Japan, its JVs in China, plus its new U.S. Steel acquisition, if approved, they will have another 20 million metric tons on top of their 89 million. Nippon and all of its hot and cold rolled steel capacity will be as big as the entire U.S. steel industry.
None of Nippon’s China JVs have been accused of dumping products into the U.S. Their Taiwanese subsidiary, Nippon Steel Stainless Precision Co., was under investigation by Commerce in 2023 for dumping stainless steel sheet and strip coils. But were granted an exemption, meaning they were not found to be dumping.
10 Years. 10 Cases With High AD/CVD Charges.
Although this list is much longer, here is a look at Nippon getting caught in the anti-dumping cross hairs year after year, going back to 2014.
In the early 1980s, Japanese steel company Mitsui was criminally convicted on dumping charges. In 2004, Congress repealed the criminal offense of dumping after the World Trade Organization ruled it illegal.
Some local steel executives have said on background that Nippon has been as much a hindrance to the growth of the U.S. still industry with its perennial dumping of steel products onto the domestic market, as it has been a help. Japan has been an ally in going after China in the World Trade Organization regarding steel overproduction. None of that has worked anyway.
The Organization of Economic Cooperation and Development estimated excess capacity globally to be approximately 625 million metric tons in 2020, for example. The large majority of capacity is in China, which accounts for over half of global steel output. The United States accounts for approximately 4%.
Global excess steel capacity is increasing again, according to the 2023 report by the Global Forum on Steel Excess Capacity.
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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