Biden blocks $14.9B US Steel sale to Japan’s Nippon Steel
US Steel sign is seen outside the Carrie Furnace which was once part of the abandoned Homestead Steel Works that continues to be further converted for public use after being designated as a historical landmark in Swissvale, Pennsylvania, U.S., Jan. 21, 2020. (AFP Photo)
U.S. President Joe Biden on Friday blocked the $14.9 billion sale of US Steel to Japan’s Nippon Steel, citing national security concerns and the need to safeguard domestic industry. The decision, made in the final weeks of Biden’s presidency, came after the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on the acquisition.
“This acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains,” Biden said in a statement. “That is why I am taking action to block this deal.”
US steel shares fall sharp
The United Steelworkers union (USW) swiftly praised Biden’s decision. USW International President David McCall expressed gratitude for the president’s “bold action” to protect American steelworkers.
US Steel shares fell by more than 5% following the announcement.
Biden’s decision reflects his longstanding emphasis on rebuilding the U.S. manufacturing base. Though he had criticized the deal for months, the decision was postponed to avoid potential diplomatic tensions with Japan. There was bipartisan opposition to the sale, with President-elect Donald Trump and Vice President-elect JD Vance both opposing the deal.
Nippon Steel, which had framed the acquisition as a necessary lifeline for US Steel, pledged not to lay off workers or close unionized facilities before the expiration of the current contract in September 2026. Despite these assurances, McCall warned that allowing the sale would have destabilized the U.S. trade system.
Deal with political intrigue
Political intrigue surrounding the deal heightened during the November presidential election, with Pennsylvania, home to US Steel, playing a key role as a swing state.
The Japanese firm and US Steel announced plans to pursue legal action, claiming the government had not followed proper procedures.
Biden, echoing trade policies similar to Trump’s, blamed foreign trade practices for the decline of U.S. steel and highlighted his administration’s tariffs on Chinese steel imports as part of his efforts to revive the industry.
“Steel production and steel workers are the backbone of our nation,” Biden said. “A strong, domestically owned steel industry is a national security priority and critical for resilient supply chains.”
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