Official diplomatic statements or reports from economic forums

President Biden Blocks Nippon Steel's $14.9 Billion U.S. Steel Deal Over National Security Concerns

Jan 3, 2025, 08:10 AM

President Joe Biden has officially blocked the proposed $14.9 billion acquisition of U.S. Steel by Japan's Nippon Steel, citing national security concerns. The decision, announced on Friday, fulfills Biden's pledge to keep U.S. Steel domestically owned and operated by American union steelworkers. The move comes after months of deliberation and opposition from the United Steelworkers union, which criticized Nippon Steel's proposals as insufficient and lacking commitments to maintain future production. Nippon Steel had attempted to address concerns by offering to grant the U.S. government veto power over reductions in U.S. Steel's production capacity. However, the administration concluded that foreign ownership of the iconic American steelmaker posed a risk to national security. The decision may strain economic relations between the United States and Japan, raising questions about the future of U.S. Steel and potential legal challenges from Nippon Steel.