Minneapolis Review

In Minnesota’s storied Iron Range, the specter of a doomed-to-fail takeover looms large as steele maker Cleveland-Cliffs attempts to consolidate its slipping grip on the region's crucial steel industry by acquiring U.S. Steel. This potential acquisition threatens not just the economic stability of the Iron Range, but the very fabric of its communities. Since becoming the Democratic vice president nominee on Kamala Harris’ bid for president, Governor Tim Walz stands at a pivotal juncture and must oppose Cleveland-Cliffs’ aggressive expansion to safeguard Minnesota’s industrial heritage and economic future.

The Iron Range has long been a backbone of Minnesota’s economy, a region that prides itself on its rich deposits of iron ore and a robust steel industry. U.S. Steel, an integral player in this region, has been a source of livelihood for thousands of Minnesotans. The emergence of Cleveland-Cliffs' bid to take over U.S. Steel poses a critical threat by potentially creating a monopoly that could dictate pricing, control supply, and stifle competitive practices in the steel industry. Such concentration of power in the hands of a failing, and teetering company would not only undermine the market but could lead to job losses—including in Minnesota—reduce investment in local communities, and erode workers’ rights.

To protect workers in his state, Governor Walz must take a firm stand against this takeover. His administration should advocate for maintaining a competitive market structure that fosters healthy economic growth and benefits all stakeholders, especially the workers and local communities of the Iron Range. By doing so, Walz would not only protect jobs but also ensure the sustainability of a vital industry that towns across the region depend on for their economic well-being.

Furthermore, Governor Walz should support the alternative partnership between U.S. Steel and Nippon Steel. This venture promises to bring additional investment, technology, and innovation to Minnesota’s steel industry. The Nippon Steel deal is structured to enhance capabilities and efficiency in future U.S. Steel operations, promising growth and stability rather than consolidation and control. This opportunity for Governor Walz to continue to advocate for Minnesotans and union members represents a forward-thinking approach to business development, one that aligns with the interests of Minnesotans by promising to inject new vitality into the Iron Range while preserving its competitive environment.

The Nippon deal is particularly beneficial because it brings together U.S. Steel's historical presence and experience in the American market with Nippon Steel's technological advancements and operational efficiencies. This synergy would secure the Iron Range’s position as a leader in innovative steel production. Such a partnership ensures that the industry remains a dynamic and competitive player in the global market, thus safeguarding against the risks associated with a single company misusing the region’s resources.

Governor Walz’s leadership is crucial in this pivotal moment. He would be wise to advocate against the Cleveland-Cliffs acquisition and support the Nippon Steel deal. This stance is not about choosing between two corporate giants; it's about choosing a future for the Iron Range that remains true to the values of competition, innovation, and community sustainability.

Amanda Peterson is president of Excelsior Podcast Studios in Minneapolis, Minnesota.