Biden blocks Japan’s Nippon Steel’s acquisition of US Steel, citing national security

President Joe Biden officially blocked the inauguration of American steel by the Japanese Nippon Steel, fulfilling its promise to keep an industrial name that is more than a century old under national ownership.

Biden said Nippon’s proposed $14.9 billion acquisition would place one of the largest U.S. steel producers under foreign control, creating a risk to the country’s critical supply chains.

“Today’s action reflects my unwavering commitment to use all authorities at my disposal as president to defend America’s national security, including by ensuring that American businesses continue to play a central role in sectors that are critical to our national security,” Biden said. said in a statement.

US Steel shares fell nearly 8% in premarket trading Friday following the president’s announcement.

Biden’s action comes after a months-long review of the deal by the Committee on Foreign Investment in the United States. The president had pointed out already in March 2024 that he intended to block the sale of US Steel to Nippon.

Biden’s decision to thwart the deal underscores a bipartisan shift toward protectionism in the United States, as both Democrats and Republicans seek to maintain domestic control over key industries as geopolitical tensions rise around the world.

President-elect Donald Trump also opposed the deal.

Biden’s decision to block the sale shows that even staunch allies like Japan are not immune to the rising protectionist tide. Tokyo is central to Washington’s efforts to keep China’s ambitions in the Indo-Pacific region in check.

US Steel and Nippon have said the deal is the best way to keep the company competitive, revitalize communities in the US Rust Belt and strengthen national security. US Steel CEO David Burritt had previously warned that the company would likely close plants if the deal falls through.