“This acquisition would place one of America’s largest steel manufacturers under foreign control and create risks to our national security and critical supply chains. That’s why I am taking action to block this deal,” President Biden emphasized in a statement, according to AFP.
US President Joe Biden speaks about the economy at the Brookings Institution in Washington DC on December 10, 2024
Mr. Biden made the above decision after a long debate over political, economic and domestic trade requirements.
Mr. Biden sees rebuilding America’s manufacturing base as a key goal of his administration, having criticized the sale of US Steel to Nippon Steel for months. At the same time, he also delayed making a decision that could damage relations with Tokyo, according to AFP. Mr. Biden will leave office on January 20.
There is rare bipartisan consensus on the issue, with US President-elect Donald Trump, a Republican, and incoming Vice President JD Vance, campaigning against the sale of US Steel to Nippon Steel. .
Meanwhile, Nippon Steel sees this acquisition as a lifeline for an American company that has long passed its golden age like US Steel. Opponents warn that the Japanese owners will cut jobs.
Nippon Steel has tried to ease worries by pledging to pause any layoffs or closures of unionized facilities through its current union contract, which is scheduled to expire in September 2026, according to AFP.
The decision on the US Steel-Nippon Steel deal was transferred to President Biden after the Committee on Foreign Investment in the United States (CFIUS) late last month failed to reach a consensus on whether Nippon Steel’s acquisition of US Steel threatens US national security or not.
Nippon Steel and US Steel have announced they will pursue legal action against the government, claiming it did not follow proper procedures in reviewing the acquisition, according to AFP.
