President Joe Biden announced on Friday that he has blocked the controversial $14.9 billion sale of U.S. Steel to Japan’s Nippon Steel, citing national security concerns and the need to protect the domestic industry.
“This acquisition would place one of America’s largest steel producers under foreign control, posing risks to our national security and critical supply chains,” Biden said in a statement. “That is why I am taking action to block this deal.”
The decision, made less than three weeks before Biden leaves office, follows intense political debate surrounding the economic, political, and trade implications of the deal. While Biden had criticized the sale for months, he had been cautious about making a final decision, weighing the potential fallout with Japan.
The move garnered rare bipartisan support, with Republican President-elect Donald Trump and incoming Vice President JD Vance also opposing the sale.
Nippon Steel, which had positioned the acquisition as a necessary step to revitalize a declining U.S. company, pledged to avoid job cuts or closures at unionized plants through September 2026 to alleviate concerns. However, critics warned that Japanese ownership could lead to job losses and diminished labor rights.
The political stakes of the deal were heightened during the November presidential election, as Pennsylvania — home to U.S. Steel — was a key swing state. This increased the influence of United Steelworkers union leaders in the debate.
The decision was eventually passed to Biden after a U.S. government panel, the Committee on Foreign Investment in the United States (CFIUS), failed to reach a consensus in late December on whether the acquisition posed a threat to U.S. national security. Biden was required to act within 15 days of the panel’s deadlock.
Both Nippon Steel and U.S. Steel have threatened to pursue legal action, claiming that the government failed to follow proper procedures during its review.
Biden, echoing some of Trump’s trade policies, blamed unfair foreign trade practices for the decline of U.S. steel and highlighted his administration’s efforts to revive the industry. “I have taken decisive action to level the playing field for American steelworkers by tripling tariffs on steel imports from China,” Biden said.
He also pointed to significant investments in U.S. manufacturing, noting that more than 100 new steel and iron mills have opened since he took office. “The domestic steel industry is stronger than it has been in years,” he added.
“Steel production — and the steelworkers who produce it — are the backbone of our nation,” Biden emphasized. “A strong, domestically owned and operated steel industry is a critical national security priority and essential for resilient supply chains.”
AFP
