Published on March 2, 2024, 1:29 am

When thinking in the context of real news and a trusted industry perspectives, we are compelled to analyze whether or not it is detrimental for the United States economy if Japanese automakers such as Honda construct millions of cars across five states; subsequently employing thousands of American citizens. If deemed non-detrimental, then it leaves one wondering why a similar investment from a Japanese steelmaker should be viewed negatively.

In line with what Honda, Nissan, and Toyota have executed; Nippon Steel harbors intentions to invest heavily within the United States. The specific plan outlines an investment of $15 billion into U.S. Steel, enhancing its potential to continue cultivating steel domestically thereby reducing the necessity for excessive steel importation from China.

Notoriously known for championing its own interests, China has invariably benefited from its most-favored nation (MFN) trading status. This status encourages a substantial exportation of American industries including jobs that once belonged to Americans. The stark difference between these two nations lies in their willingness to actually invest in American job creation with Japan significantly investing billions on automotive manufacturing jobs.

Toyota Motor Manufacturing, situated in San Antonio, Texas, employs approximately 10,000 Americans directly. Every minute sees a new Tundra pick-up or Sequoia SUV produced with Americans being able to afford these vehicles thanks to well-paying jobs from the same companies.

Possessing a Christian worldview naturally propels one towards empathy with redundant workers who would gladly accept their former roles back instead of settling for minimum wage occupations due to outsourcing processes directed towards China.

Initially met with little resistance towards job creation instigated by Japanese automakers who’ve invested heavily in America; presently articulated objections regarding Nippon Steel’s proposed contributions ring hollow on both ends of the spectrum.

Recent history provides us with evidence where Donald Trump pledged his staunch opposition against Nippon Steel’s proposed investments. An ideal he would uphold even after successfully ascending into presidency based on the simplistic view of protecting American interests; something he opines would not benefit Americans in the slightest due to the high risk it carries in dissuading Japanese companies from investing further. This decision also feeds into a more ambiguous stance towards fostering dependence on Chinese-made steel over encouraging partnerships with a Japanese-based company seeking to create benefit from American co-workers instead of solely profiting off them.

Honda’s recent transaction with General Motors for its EV technology – GM’s Ultium battery, with considerable implications to the 2024 Honda Prologue model, raises questions about whether Honda should be refrained from investing in such international conglomerates.

Stefan Angrick, an experienced economist, speaks on broken deal potentials possibly damaging investment ties and causing friendshoring initiatives to retrogress. In such scenarios, relocating U.S manufacturing facilities operated by Honda, Toyota and Nissan to China could save the Japanese companies tremendous amounts; however such actions might incur significant losses on the American job scene.

The vitriolic bipartisan approach towards Nippon Steel’s proposed deal might be credited to steel being seen as an “American” industry; a sentiment that was once shared concerning automobile manufacturing. Changes have seen Americans move from cultivating American-brand cars into lucrative roles creating vehicles under Japanese brands.

Ultimately America stands to gain significantly should they allow their citizens an opportunity towards manufacturing steel.