The president of United States, Joe Bidenofficially blocked the acquisition of U.S. Steel on the part of Nippon Steela deal valued at approximately $14.9 billion, citing national security concerns and the need to maintain American control over key industries. As reported CNBCthis decision underscores “Biden’s unwavering commitment to use all available powers as president to defend US national security.”
According to APthe decision comes after an extensive analysis by the Committee on Foreign Investment in the United States (CFIUS), which failed to reach consensus on the potential national security risks associated with the agreement. As a result, the matter was referred to the president. According to statements by a US official, cited by AP On condition of anonymity, some committee agencies doubted the acquisition posed a security risk, although uncertainty remains.
The president Joe Bidenin a statement shared by the White House, highlighted that U.S. Steel “will remain a proud American company, American owned and operated, with American union workers.” He also emphasized that a “strong, domestically operated steel industry is an essential national security priority” and forms a critical foundation for the country’s resilient supply chains.
The proposed acquisition of Nippon Steelwhich was announced in December 2023, planned to offer $55 per share and maintain both the company name and its headquarters in Pittsburgh. However, media such as Bloomberg They highlighted that “the agreement raised concerns about the impact on unionized workers, supply chains and safety.” The CEO of U.S. Steel, David Burrittpreviously warned that, without this transaction, it would be necessary to close plants due to the need for significant investments.
CNBC He highlighted that Biden’s decision reflects a change in the United States towards more protectionist policies, a trend supported by both Democrats and Republicans in a context of growing geopolitical tensions. But This approach could also affect relations with Japan, a strategic ally in Asia and holder of the largest amount of American debt abroad.
This controversial agreement also generated internal political and economic division. According to APthe president of the union United Steelworkers, David McCallcelebrated Biden’s position and stated that “it is time to reject this agreement to focus on the future.” On the other hand, figures such as the former Secretary of State, Mike Pompeocited by The Wall Street Journal, They oppose the blockade, calling it “a shortsighted view” and arguing that it would “strengthen US Steel’s operations and production capacity, benefit its workers, and benefit the competitiveness of the US steel industry.”
Furthermore, the president-elect, Donald Trumphas also expressed his rejection of sale. According to BloombergTrump promised to prevent negotiations and support the industry through tax incentives and tariffs. Biden’s final decision is widely seen as a victory for unionized workers, although business sectors warn of future challenges he could face. U.S. Steelsuch as resuming the sales process or finding an alternative buyer.
Finally, Japan’s response to this decision has not yet been clearly defined, but—as emphasized CNBC—This highlights that not even a close American ally is exempt from Washington’s trade tightening. On the other hand, Bloomberg points out that Nippon Steel could be forced to look for new growth opportunities outside of this failed acquisition.
With this decision, Biden reaffirms his vision of strengthening the national manufacturing industry and prioritizing American interests in strategic sectors. However, the political, economic and international implications remain open, marking a new chapter in global trade tensions between allies.
