President Joe Biden announced Friday that he would block the sale of U.S. Steel to Japanese manufacturing giant Nippon Steel.
Biden said that he was making the move over concerns about national security and supply chains. Nippon had offered to buy U.S. Steel for $15 billion and said it would invest billions in the U.S. if the sale went through.
“It is my solemn responsibility as President to ensure that, now and long into the future, America has a strong domestically owned and operated steel industry that can continue to power our national sources of strength at home and abroad; and it is a fulfillment of that responsibility to block foreign ownership of this vital American company,” Biden said in a statement. “U.S. Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers – the best in the world.”
He said that the decision was made after a committee of national security and trade experts determined that the “acquisition would place one of America’s largest steel producers under foreign control and create risk for our national security and our critical supply chains.”
While the United Steelworkers union opposed the proposed sale, U.S. Steel said last week that it hoped Biden would approve the deal.
“It is the best way, by far, to ensure that U. S. Steel, including its employees, communities, and customers, will thrive well into the future,” the company said. “It is our hope that President Biden will do the right thing and adhere to the law by approving a transaction that so clearly enhances U.S. national and economic security.”
Biden first came out against the proposed sale in March 2024, three months after it was first announced. His opposition also came months after President-elect Donald Trump publicly opposed the deal in January 2024, saying he would block the deal if elected president.
Trump again reiterated last month that he would not allow Nippon to buy U.S. Steel.
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan,” Trump posted on Truth Social. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!”
U.S. Steel was once the largest company in the world and employed as many as 340,000 workers, but now ranks as just the 24th largest steel producer globally as of 2023, according to the World Steel Association. Nippon was the fourth largest producer as of 2023.
