Biden Halts $14.9B US-Japan Steel Deal: Key Implications
President Joe Biden stated on Friday that he has halted the contentious $14.9 billion sale of US Steel to Japan’s Nippon Steel, citing a strategic necessity to defend American industries.
This transaction would put one of America’s largest steel manufacturers under foreign control, jeopardizing our national security and crucial supply lines,” Biden warned in a statement.
“That is why I am taking action to block this deal.”
Biden’s decision, made less than three weeks before he leaves office, comes after months of political bickering over competing domestic political, economic, and trade interests.
The Democrat, who made rebuilding of the US manufacturing base a major goal of his administration, had criticized the deal for months, while holding off from a decision that could risk damaging relations with Tokyo.
There was rare bipartisan agreement on the issue, with Republican President-elect Donald Trump and the incoming vice president, JD Vance, also campaigning against the sale.
Nippon Steel touted the takeover as a lifeline for a US company that is long past its heyday.
Opponents warned that the Japanese owners would slash jobs. Nippon Steel attempted to calm nerves by pledging a pause on any layoffs or closures of unionized facilities through the current union contract expiring in September 2026.
Political intrigue over the deal intensified during the November presidential election, in which Pennsylvania — the home of US Steel — was a critical swing state, giving United Steelworkers union leaders added influence.
The decision was left with Biden after a US government panel failed to reach a consensus in late December on whether US Steel’s acquisition by Nippon Steel threatened Washington’s national security.
The transaction was then referred to Biden, who was legally required to act within a 15-day deadline, after the deadlock by the Committee on Foreign Investment in the United States (CFIUS).
The Japanese company and US Steel have vowed to pursue legal action against the government, claiming it failed to follow proper procedures during its consideration of the acquisition.
Biden — echoing Trump’s own trade policies — blamed unfair foreign trade practices for the decline of US steel. He said his mixture of protectionism and subsidies had brought the industry back to health.
“I have taken decisive action to level the playing field for American steelworkers and steel producers by tripling tariffs on steel imports from China,” Biden stated.
Since taking office, over 100 new steel and iron mills have opened, indicating record manufacturing investments. “The domestic steel industry is stronger than it has been in years.”
“Steel production — and the steel workers who produce it — are the backbone of our nation,” said Vice President Joe Biden.
“A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains.”
AFP
