U.S. Sen. Jim Banks, R-Indiana, and Rep. Frank Mrvan, D-Highland, have sent a joint letter to the U.S. Department of Treasury, asking for the nation’s owned and operated steel industry to be preserved.
“We write to express our belief that a strong, domestically owned and operated American steel industry is vital to our national security,” said the letter to Secretary Scott Bessent. “If American steel production does not remain robust in peacetime, we risk unreliable supplies of critical steel products to the military in wartime.”
The legislators’ letter comes about one month after President Donald Trump ordered a new Committee on Foreign Investment review of a deal between U.S. steel and Japanese-owned Nippon Steel.
Following Trump’s CFIUS order, U.S. Steel released a statement, saying the company appreciates and commends the president’s leadership. Trump’s decision was pivotal as U.S. Steel works to invest in American steelmaking, according to their February statement.
“We look forward to continuing to work closely with President Trump and his administration to finalize this significant and important investment, which will preserve existing jobs, create new jobs, enhance national security and secure a bright future for American manufacturing,” the statement said.
Before former President Joe Biden left office, he turned down the more than $14 billion deal, citing that CFIUS found national security risks.
In February, Trump announced that Nippon Steel was dropping the acquisition and would instead make an “investment, rather than a purchase,” according to Post-Tribune archives. He planned to mediate and arbitrate as the companies negotiated the investment.
In their letter, Banks and Mrvan asked Bessent to consider the “interrelationship between defense supply chains and domestic industrial supply chains.”
“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. “We should not entrust companies that have repeatedly circumvented our trade laws and have dumped large volumes of steel onto our shores with sustaining U.S. steel production capacity and rigorously defending U.S. trade remedy law.”
U.S. Steel was unable to immediately respond to a request for comment following Banks and Mrvan’s joint letter.
Gary Mayor Eddie Melton has continued to support the potential steel deal, which he said presents both security and opportunity for thousands of American steelworkers and could bring “transformative benefits” to the city.
In August, Nippon Steel announced that it would invest about $300 million in the Gary Works facility, updating the blast furnace and extending its life by about 20 years. Nippon Steel Vice Chairman Takahiro Mori later said the company planned to invest $1 billion into Gary Works and nearly $3 billion into union-represented facilities.
“Nippon Steel has made their clear commitments to invest in and strengthen American manufacturing,” Melton previously said. “Their voluntary measures, such as maintaining production capacity within the U.S. and safeguarding jobs at facilities across the country, are vital to securing the future of steelmaking in Gary.”
Melton has thanked U.S. Sen. Todd Young, R-Indiana, for his help advocating for Gary as Trump reevaluates the deal.
In response to Banks and Mrvan’s letter, in a Tuesday statement, Melton continued to express his support for the steel deal. He remains committed to ensuring any potential deal protects steelworker jobs, honors labor agreements, safeguards America’s strategic interests and brings long-term sustainable investment, Melton’s statement said.
The Biden administration failed to identify any substantive national security issues with the deal, Melton also said, and a new CFIUS review allows the nation to address concerns transparently and thoroughly.
“As we witness in real time the shifting economy and idling of local steel mills, our local and national economy stands at a critical crossroads,” Melton said. “The hardworking families who have built their lives around our steel industry deserve nothing less than a fair, comprehensive evaluation of all options — one that balances both national security considerations and the economic opportunities that could revitalize our region for generations to come.”
mwilkins@chicagotribune.com