The Nippon Steel deal: taking another look

“Countries have no friends – just interests,” or so goes the paraphrased version of Lord Palmerston’s statement. That was so cynical – so 19th Century British Empire. But 170 years later, try buying another nation’s steel company and you might think Lord Palmerston was right.

Japan’s largest steel company, Nippon Steel, wants to acquire US Steel. Many decades ago, it was a veritable symbol of American industrial might and technological prowess. Less so these days.

United States President Joe Biden pronounced himself opposed to the deal. That was only two months after his love-fest with Japanese Prime Minister Fumio Kishida touting the strength of the Japan-US alliance: rock solid and based on shared mutual values.

The decision to approve or reject the deal has been pushed back until after the November election.

Former President Donald Trump is also against the deal, as is the Republicans’ vice presidential candidate Senator JD Vance.

One might get the impression from the rhetoric that the end of the republic is nigh if foreigners get their hands on US Steel.

The main reason given is national security.

Is there a national security issue?

It’s prudent that a country watch its key industries – and who owns them – closely. But maybe the biggest issue with the US Steel deal is that it’s embarrassing.

For one thing, people are nothing if not tribal. And who doesn’t want the home team to succeed, on its own?

This case is also an embarrassing reminder that America’s business and political elites tossed away the country’s manufacturing dominance over the last five decades – shipping much of it overseas.

But a little embarrassment is sometimes useful if it helps you improve.

And this is a deal where swallowing one’s pride is