President Joe Biden Blocks US Steel Sale to Japan

President Joe Biden has blocked United State $14.9 billion steel sales to Japan’s Nippon Steel, citing national security concerns.

The decision, announced Friday, aims to protect America’s steel industry but has sparked controversy from the companies involved and raised questions about the future of international investments in the United States.

President Biden’s decision followed months of debate and a stalemate by the Committee on Foreign Investment in the United States (CFIUS), which reviews deals for potential national security risks. Unable to reach a consensus, the matter landed on Biden’s desk, just weeks before his presidency ends.

“This acquisition would place one of America’s largest steel producers under foreign control, creating risks for our national security and critical supply chains,” Biden said in his statement.

He emphasized the importance of maintaining a strong, domestically owned steel industry, a stance that aligns with his broader focus on rebuilding U.S. manufacturing.

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In a rare moment of bipartisan unity, Republican President-elect Donald Trump and Vice President-elect JD Vance also voiced opposition to the deal during their campaign, amplifying pressure on Biden to act. The United Steelworkers (USW) union, representing many workers in the industry, was quick to applaud Biden’s decision.

“We’re grateful for President Biden’s willingness to take bold action to maintain a strong domestic steel industry and for his lifelong commitment to American workers,” said USW International President David McCall.

Not everyone was pleased. In a joint statement, Nippon Steel and US Steel expressed strong disappointment, alleging that the decision was politically motivated and lacked evidence of a genuine national security threat.

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“The president’s statement and order do not present any credible evidence of a national security issue, making clear that this was a political decision,” the companies said. They added that the process was “deeply corrupted by politics” and vowed to take legal action.

The companies also warned that the decision could discourage future investments by U.S. allies, calling it a “chilling message” to international businesses.

Japan’s industry minister, Yoji Muto, expressed frustration with the Biden administration’s decision. “It is incomprehensible and regrettable that the Biden administration has made this kind of decision, citing national security concerns,” Muto said in a statement.

The timing of the decision was notable, as it followed the recent U.S. presidential election in which Pennsylvania—a critical swing state and the home of US Steel—played a pivotal role. Political dynamics, including the influence of the USW union, added another layer of complexity to the debate.

“A strong, domestically owned steel industry is essential for national security and resilient supply chains,” Biden said Friday. He attributed the decline of U.S. steel production to unfair foreign trade practices and emphasized the importance of protecting American workers.

Nippon Steel, for its part, argued that the acquisition would have been a lifeline for a struggling US Steel, a company that has seen better days. The Japanese firm pledged not to cut jobs or close unionized facilities until at least 2026. Despite these assurances, opponents warned that foreign ownership could lead to long-term instability in the industry.