Official announcements from the White House or U.S. Department of Commerce

Biden Blocks Nippon Steel's U.S. Steel Acquisition, Prompting Legal Threats and Investment Concerns

Jan 6, 2025, 01:30 AM

President Joe Biden has blocked Nippon Steel Corp.'s proposed acquisition of U.S. Steel Corp., citing national security concerns. The decision has been met with disappointment and criticism from both Nippon Steel and U.S. Steel, who jointly expressed their frustration in a statement and suggested they might pursue legal action against the U.S. government. The move has sparked concerns about future investments between Japan and the U.S., with Japanese Prime Minister Shigeru Ishiba demanding a clear explanation from Washington on the national security risks involved. Within the Biden administration, there was significant dissent, with several cabinet members and senior officials opposing the block. The decision also drew criticism from Republican Representative Dan Meuser, who accused Biden of confusing Japan with China. In response to the block, Nippon Steel's CEO vowed to continue expanding the company's U.S. operations and to explore all possible measures to protect their legal rights. Japan's Minister of Economy, Trade and Industry, Yoichi Muto, expressed regret over the decision and indicated that the government would consider what support could be provided to Nippon Steel moving forward.