US President Joe Biden has blocked the proposed takeover of US Steel by Japan’s Nippon Steel, citing national security concerns. This move delivers on a promise Biden made during the 2024 presidential campaign, despite potential risks to US-Japan relations and foreign investment.
Biden’s decision was influenced by pressure from the United Steelworkers union, which opposed the deal due to concerns about the long-term viability of the US steel industry. The union praised Biden’s move, calling it the “right move for our members and our national security.”
Nippon Steel and US Steel criticized Biden’s decision, stating that the review process was “corrupted” for political gain. They claimed that the move would hurt American steelworkers and send a “chilling message” to foreign investors. The companies may take legal action to protect their interests.
The blocked deal raises questions about the future of US Steel, a 124-year-old company that was once a symbol of American industrial power. US Steel had warned that it might need to close factories without new investment, but Nippon Steel had pledged not to cut jobs and offered concessions to win support for the deal.
Analysts believe that the deal might not be entirely dead, as the Committee on Foreign Investment in the United States can extend the 30-day deadline for scrapping the transaction. Some experts think that Nippon Steel and US Steel might try to revive the deal under the new Trump administration, potentially offering different terms to secure approval
