Biden Blocks Sale of US Steel to Nippon Steel, Citing National Security Concerns
President Joe Biden has blocked the proposed sale of US Steel to Japan’s Nippon Steel, citing national security concerns in a move that could strain relations with a key Asian ally, Al Jazeera reports.
The decision comes after the Committee on Foreign Investment in the United States (CFIUS) failed to reach a consensus on the deal’s potential national security risks last month.
The controversial sale had been widely anticipated to be blocked by Biden, who had previously voiced his opposition during his unsuccessful reelection campaign. President-elect Donald Trump, who takes office on January 20, also opposed the deal, calling it “a horrible thing.”
The proposed acquisition had become a significant political flashpoint, particularly in the critical swing state of Pennsylvania. The state, a major center for steel production, had flipped from Trump to Biden in 2020 and then back to Trump in the recent election.
The United Steelworkers (USW) union had strongly lobbied against the sale, arguing it represented “nothing more than corporate greed, selling out American workers and jeopardizing the long-term future of the domestic steel industry and our national security.”
Under the proposed merger, US Steel would have become a subsidiary of Nippon Steel while maintaining its name and headquarters in Pittsburgh. The combined entity would have ranked among the world’s largest steel producers, a fact that was overwhelmingly supported by US Steel shareholders.
However, the White House ultimately sided with concerns that the sale could pose a threat to the country’s industrial base and military capabilities.
Biden’s decision is likely to create tension with Japan, a key partner in Washington’s efforts to counter China. Japanese Prime Minister Shigeru Ishiba wrote to Biden in November urging him to approve the deal to protect the strong relationship between the two countries, according to Reuters.
