During Thursday’s House Appropriations Committee hearing, Rep. Frank Mrvan (D-IN) questioned Commerce Secretary Howard Lutnick about the Nippon Steel deal.
00:00Mr. Secretary, during our first exchange, we talked slightly about Nippon.
00:07My first question will be is, with that deal, you said you agreed, and I don't want to put words in your mouth.
00:14Were you in the room or at the table for the CFIUS agreement, and what was your recommendation?
00:21I can't really discuss the particulars.
00:24But generally, we came to the view that the deal would be good for America.
00:30The president came to the view it would be good for America.
00:33And we are discussing how to make sure that that protects the USA and America.
00:40And those discussions are ongoing right now.
00:42In the beginning, the administration, when he was a candidate, was against the deal.
00:48Well, the terms of the deal did not protect America.
00:51And he's interested in making sure the terms of the deal protect America.
00:55And I agree.
00:56So I represent Northwest Indiana, Gary, Indiana, one of the top steel producing.
01:01One of the concerns with the USW, the union, is to specifically make sure that the investments that have been agreed upon, that those...
01:11You can say promised.
01:12How about that?
01:13See, that's my concern.
01:15You're right.
01:15Promised, based on market conditions.
01:18So these are real-life individuals.
01:19My father came over from Czech...
01:21Our grandfather came over from Czechoslovakia, ended up in Northwest Indiana, worked in the steel mills.
01:26Families everywhere around my district, it is our economic engine.
01:30You have passionately talked about how it is a national security issue, right?
01:36So with that, many promises have been made.
01:39First and foremost, to my steel workers, just a recommendation.
01:42The USW wants a seat at the table because they are concerned about disinvestment in their union blast furnaces that will go to non-union shops in other parts of the country.
01:54So in my district, which I'm here to protect, our concern level is to make sure that the administration hears the voices very loudly and clearly from my district that we want assurances, not based on market conditions, that this investment, promised investment, will protect steel workers' jobs and tradesmen who provide the maintenance on those blast furnaces.
02:22So what are you going to do specifically, not broad strokes of what's going to happen, specifically, what are you going to do to protect those jobs in my district?
02:34I agree with you.
02:38My understanding is the president agrees with you, and I think the end result of the transaction with Nippon will agree with you.
02:46What are some of the specifics, or can I get a commitment from you that the USW union representation leadership will have a seat at the table to protect their interests in U.S. steel?
02:59I think the best I can say is that the president understands their concerns.
03:07I understand their concerns.
03:09I have met with the steel workers' union, and I understand their concerns.
03:13Do you understand that this creates uncertainty, unpredictability for families who want to make sure that they have a secure income, health care, secure pension, that that uncertainty causes great disbelief in what is going on?
03:34And specifically, what are you going to do to protect those jobs?
03:37I understand you agree with me.
03:39I mean, we agree that a $14 billion investment on top of a regular $14 billion investment, that's pretty good.
03:46But what are you specifically going to do to protect those steel workers' jobs?
03:52President of the United States flew to Pittsburgh.
03:55I saw the press conference.
03:57I've got a minute.
03:58What are you specifically going to do?
04:00I saw the press conference.
04:02I saw it.
04:02I saw the rally.
04:03Specifically, what are you going to do?
04:06The president of the United States will direct what he wants to do, and I will assist him in doing so.
04:13He knows the steel workers' union concerns, and I think they will be very happy with the outcome.
04:20Okay.
04:20So, times of the essence, they want a seat at the table so that there's not disinvestment in my community and investment in other parts of the community which would have cheaper labor.
04:30I want to make sure that I articulate that to you.
04:32So, then, ultimately, I also want to ask about, with the Nippon deal, if there is reshoring manufacturing and there's a 50% tariff around the world on steel, correct?
04:47Nippon now is an investor in U.S. steel.
04:50Please tell me if they are going to be able to circumvent that 50% tariff and ship.
04:57No.
04:58Steel.
04:59No.
04:59No.
05:00Okay.
05:00If they make it in America, you don't pay the tariff.
05:03If you make it anywhere else but America, anywhere else you're going to pay.
05:07But are you following me?
05:09A foreign country is investing in an American company to circumvent those trade policies or to the tariffs.
05:18If you hire Americans and you build it here, you don't pay the tariff.
05:22Okay.
05:22If a foreigner builds, good for them.
05:25Okay.
05:26But in America, with Americans.
05:27Know that, I just want to close in saying, know that I agree, a $14 billion investment in the infrastructure of our steel industry is a good thing.
05:37But understand how vitally, gravely important it is to the steel workers, to my community, to my economic development, or my economic engine.
