Japan’s the world’s No.4 steelmaker ‘Nippon’ has been involved in providing good and robust quality steel to larger enterprises specifically those dealing in vehicular and building fields, by aiming to export more than 100 million tons across the globe. It is witnessed, Nippon has got good dealing history with America in exporting steel. The US makes profit access through good quality Japanese Nippon steel and good constructions and Japan makes profit by getting fine export of steel.
Nippon aims to use the advanced technology of US company in production of steel due to not being technologically efficient and advanced as US. This has been a challenge for Harris and has now become a challenge for Trump as well. Nippon has been already expanding and upgrading its production in other parts of the world. It now has operations and joint ventures with India, Brazil, Sweden, and Australia but the US is a big part of its master plan. So, it is actually a political framework of Nippon Steel Company to become a global competitor.
However, current problems have disturbed their relations specially in the post lockdown period. The rising price of raw material due to failing ecosystem, the resistance from the politicians and the United Steelworkers (USW), a major labour group, national security issues, shortage of labour and supply chain disruptions, and the rising import taxes on steel by America have created hurdles in the commerce between both these countries. Besides, an excessive steel production by China on lower price has created a price battle and has created a loss to the export of Nippon Steel.
Nippon has tried to purchase the American-based US. Steel because the US steel companies have faced a huge loss in the world. “According to a draft letter agreement also seen by the Prospect, Nippon has offered to invest $1.4 billion in U.S. Steel’s older facilities that USS has been closing, and to refrain from layoffs through the end of the Steelworkers’ current contract in 2026. Nippon also offers to comply with regular pension contributions.” (Kuttner 1) The Japanese steelmaker has promised not to transfer any U.S. Steel production capacity or jobs outside the United States. It has also said it would not interfere in any of U.S. Steel’s decisions on trade matters, including decisions to pursue trade measures under U.S. law against unfair trade practices.
However, this deal faces a resistance from the U.S. government due to concerns over the potential takeover’s effect on the US economy. President Joe Biden has already announced, ‘I will formally block the takeover’. The American government fears it will disturb the stability and culture in America. Otherwise, the cease has not been brought as yet and both the countries have been planning to relax levies on imports and exports, spend more money on steel production &form better relations with each other. If they follow these strategies, they can be good partners & can succeed in their businesses in the universal market.
So, there is a hope that a mutual coordination will be introduced and lay off would not take place in America.
References
‘Nippon Steel committed to U.S. Steel takeover, aims to close in Dec, says executive’. By Yuka Obayashi, Katya Golubkova and Ritsuko Shimizu. Reuters. 5 December, 2024. Web: https://www.reuters.com/markets/deals/nippon-steel-committed- us-steel-takeover-aims-close-dec-says-executive-2024-12-04/https://theweek.com/business/us.
‘The U.S.-Japan Summit and the Nippon Steel Deal’ By Robert Kuttner. April 10, 2024. Web: https://Prospect.Org/Economy/2024-04-10-Us-Japan-Summit-Nippon-Stee l-Deal/
First Writer- Ms. Anshika Jain
B.A. Hons. (English), 3rd Semester
(Roll Number: – 23/SMEH/BA(ENG)/006)
Department of English, School of Media Studies and Humanities
Manav Rachna International Institute of Research and Studies, Faridabad
Edited by-
Dr. Madhu Sharma
Assistant Professor, Department of English, School of Media Studies and Humanities
Manav Rachna International Institute of Research and Studies, Faridabad