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President Joe Biden has officially rejected a nearly $15 billion proposal by Japan’s Nippon Steel to acquire Pittsburgh-based U.S. Steel, reinforcing his commitment to safeguarding America’s industrial and national security interests.
In a statement on Friday morning, Biden emphasized the importance of maintaining strong U.S.-owned steelmaking capacity. “We need major U.S. companies representing the bulk of our steelmaking capacity to lead in protecting America’s national interests,” he said.
The decision follows a lack of consensus within the Committee on Foreign Investment in the United States (CFIUS), which reviewed the deal and flagged potential national security concerns. CFIUS, chaired by Treasury Secretary Janet Yellen and comprising multiple federal agencies, submitted its findings to Biden, who had 15 days to decide on the matter.
A U.S. official, speaking anonymously, previously revealed that some agencies on the panel doubted whether Nippon Steel’s acquisition of an American steelmaker posed tangible risks to national security. However, the committee ultimately refrained from recommending approval.
This move, coming mere weeks before Biden’s term concludes, risks straining U.S.-Japan relations. Japan is a key ally in Asia and the largest foreign holder of U.S. debt.
Biden’s opposition to the deal is not new. In March, he expressed concerns over the implications for labor agreements, jobs, and the transparency of Nippon Steel’s financial operations. His stance aligned with the United Steelworkers union, which raised alarms about the deal’s potential impact on unionized workers and the broader industry.
“It’s vital that American steel companies remain domestically owned and operated, powered by American steelworkers,” Biden stated in March while campaigning for reelection. “U.S. Steel has been an iconic symbol of American industry for over a century, and it must stay that way.”
President-elect Donald Trump has also voiced opposition to the acquisition, pledging in December via his Truth Social platform to block the deal and bolster the domestic steel industry through tariffs and tax incentives. United Steelworkers President David McCall welcomed both Biden’s and Trump’s resistance, saying, “It’s time to reject this deal so we can focus on the future of the industry.”
Nippon Steel’s bid, announced in December, included a $14.1 billion cash offer. The Japanese company promised to retain U.S. Steel’s name and Pittsburgh headquarters. However, critics worried about the potential impact on unionized jobs, supply chains, and national security.
Despite Biden’s decision, the deal garnered significant support from business leaders and groups like the U.S. Chamber of Commerce. Former Secretary of State Mike Pompeo criticized the potential rejection in an op-ed for the Wall Street Journal, calling it “shortsighted.”
“The acquisition would bolster U.S. Steel’s operations, benefit workers and their communities, and enhance the competitiveness of the American steel industry,” Pompeo argued.
