3rd January 2025 – (Washington) On Friday, President Joe Biden officially announced his decision to block the proposed takeover of U.S. Steel by Japan’s Nippon Steel, fulfilling his commitment to keep the century-old American company under domestic ownership.
Biden highlighted that the $14.9 billion acquisition would place a significant U.S. steel producer under foreign control, posing a potential risk to the country’s vital supply chains. “Today’s action reflects my unwavering commitment to use all available authorities as President to protect U.S. national security, ensuring that American firms remain central in critical sectors,” he stated.
Following the announcement, U.S. Steel’s stock price dropped by over 7%. This decision follows a lengthy review of the deal by the Committee on Foreign Investment in the United States.
The United Steelworkers union has been a vocal opponent of the Nippon takeover since it was announced in December 2023. Biden indicated his intention to block the sale as early as March 2024, aligning with the union’s stance against the acquisition.
This move reflects a growing bipartisan trend towards protectionism in the U.S., as both Democrats and Republicans aim to maintain domestic control over essential industries amid rising geopolitical tensions.
Former President Donald Trump also expressed opposition to the deal. Biden’s action signals that even close allies like Japan are not exempt from the increasing protectionist sentiment, especially as Tokyo plays a crucial role in U.S. efforts to counter China’s influence in the Indo-Pacific region.
Both U.S. Steel and Nippon Steel have argued that the merger would enhance competitiveness, revitalise American communities, and bolster national security. However, U.S. Steel CEO David Burritt has previously warned that plant closures could occur if the deal fails.
