Trump vows to block Japanese takeover of US Steel
- The Biden administration is reviewing a $15 billion bid for US Steel by Japan's Nippon Steel, pending a national security referral from CFIUS by late December.
- Both Biden and Trump have publicly expressed intentions to block the acquisition due to concerns over national security and its impact on American steel jobs.
- The potential blocking of this deal reflects ongoing tensions in US trade policy, particularly regarding foreign ownership of critical industries.
In December 2024, President Joe Biden is expected to formally block the proposed $15 billion acquisition of US Steel by Japan's Nippon Steel, citing national security concerns. This decision comes as the Committee on Foreign Investment in the United States (CFIUS) reviews the deal, which is opposed not only by the Biden administration but also by former President Donald Trump. Both leaders have voiced concerns regarding the potential impact on the American steel industry and the risks to national security that may arise from allowing a foreign entity to acquire a historically significant company like US Steel. The CFIUS, which includes high-level officials from the government, is set to provide a recommendation to Biden, with a deadline for referral by late December. Reports indicate that the acquisition could pose risks related to the domestic supply of steel necessary for vital infrastructure projects. Despite Nippon Steel's offers including guarantees to retain US Steel’s production capacity and staff, opposition from various stakeholders, including the United Steelworkers Union, has emerged, reflecting fears of job displacement and the transfer of critical operations abroad. The union's stance highlights a broader concern regarding foreign ownership of essential industries and its implications for American workers. Historically, US Steel has experienced decline in recent decades, prompting the company to seek investment through acquisitions. However, the political landscape complicates such deals, as evidenced by the united front against Nippon Steel's bid from both Biden and Trump. The expected litigation over the deal could also delay Nippon Steel's plans and affect market dynamics in the steel industry, which has already been reeling from previous tariff policies under earlier administrations. This underlines the ongoing challenges faced by the American steel sector as it navigates foreign competition and domestic policy changes aimed at protecting national interests.