Biden Blocks Japanese Takeover of US Steel Amid National Security Concerns

Fri Mar 14 2025 15:20:00 GMT+0200 (Eastern European Standard Time)
Biden Blocks Japanese Takeover of US Steel Amid National Security Concerns

President Biden halts Nippon Steel's acquisition of US Steel, citing potential risks to national security.


The decision, influenced by labor union opposition and upcoming electoral pressures, showcases Biden's emphasis on domestic industry reliance amidst international partnerships.


In a significant move, President Joe Biden has halted the proposed acquisition of US Steel by Japan's Nippon Steel, citing potential threats to national security. This decision arrives a year after Nippon Steel announced its intent to purchase US Steel for $14.9 billion, characterizing the deal as essential for the growth of its smaller competitor based in Pennsylvania. However, the takeover faced swift opposition from the United Steelworkers union, which mobilized substantial political pressure, particularly in light of the upcoming 2024 presidential election.

Despite some advisors warning about potential diplomatic repercussions with Japan, a key ally, Biden chose to reject the deal. This move reflects a broader commitment to uphold US ownership in strategic industries, especially given recent industry sentiments wherein US Steel warned of possible plant closures if it did not secure new investment.

Concerns regarding job losses were publicly dismissed by Nippon Steel, while US Steel expressed that without the acquisition, it would face operational viability issues. Some business sectors raised alarms that rejecting this deal could deter future international investments in the United States.

The decision also comes on the heels of criticism from former President Donald Trump and soon-to-be Vice President JD Vance, emphasizing the political dimensions that Biden must navigate. A US government panel tasked with investigating the acquisition's implications on national security did not reach a consensus by the legislative deadline, leading Biden to make a decisive choice.

In announcing his verdict, Biden reinforced the importance of maintaining robust domestic steel production for the nation’s infrastructure and security. "Steel production—and the steel workers who produce it—are the backbone of our nation," he asserted, indicating that diminished domestic steel capability would compromise national strength.

Legal actions from Nippon Steel and US Steel are anticipated if the acquisition is permanently halted. Experts like Professor Stephen Nagy from Tokyo's International Christian University view this as a politically driven decision that aligns with Biden's stated aim of fostering a policy that supports middle-class interests. This stance mirrors elements of the "Make America Great Again" agenda from the previous administration, underscoring the ongoing balancing act between international cooperation and domestic economic priorities.

MORE ON THEME

Wed, 12 Mar 2025 21:19:25 GMT

Trade Tensions Escalate as E.U. and Canada Respond to U.S. Tariffs

Wed, 12 Mar 2025 21:19:25 GMT
Wed, 12 Mar 2025 04:39:49 GMT

Trump Enforces New Tariffs on Steel and Aluminum Imports

Wed, 12 Mar 2025 04:39:49 GMT
Tue, 11 Mar 2025 01:09:40 GMT

**AI Revolution in China: Embracing a Technological Future**

Tue, 11 Mar 2025 01:09:40 GMT
Mon, 10 Mar 2025 20:45:05 GMT

**Greenland's Pivotal Election: Independence and U.S. Interests at the Forefront**

Mon, 10 Mar 2025 20:45:05 GMT
Mon, 10 Mar 2025 15:08:21 GMT

**Greenland's Pivotal Elections: Independence Debate Ignites Amid Trump's Aspirations**

Mon, 10 Mar 2025 15:08:21 GMT
Sat, 08 Mar 2025 16:53:24 GMT

Trump and Putin: A Complex Relationship Amid Global Tensions

Sat, 08 Mar 2025 16:53:24 GMT
Fri, 07 Mar 2025 01:07:57 GMT

Five Convicted for Far-Right Plot to Kidnap German Health Minister

Fri, 07 Mar 2025 01:07:57 GMT
Thu, 06 Mar 2025 20:41:42 GMT

German Far-Right Group Sentenced for Kidnapping Plot Against Health Minister

Thu, 06 Mar 2025 20:41:42 GMT
Thu, 06 Mar 2025 20:39:57 GMT

Plans to Downsize U.S. Diplomatic Missions Amid Global Competition

Thu, 06 Mar 2025 20:39:57 GMT
Thu, 06 Mar 2025 10:37:50 GMT

The Fallout of US Intelligence Halt on Ukraine's Defense Strategy

Thu, 06 Mar 2025 10:37:50 GMT
Thu, 06 Mar 2025 07:09:48 GMT

US Indicts Chinese Nationals in Cyber Espionage Case Targeting Dissidents

Thu, 06 Mar 2025 07:09:48 GMT
Wed, 05 Mar 2025 09:30:02 GMT

Elissa Slotkin: The Rising Star Challenging Trump's Agenda

Wed, 05 Mar 2025 09:30:02 GMT
Wed, 05 Mar 2025 07:10:51 GMT

Trump's Congressional Address: Highlights and Controversies

Wed, 05 Mar 2025 07:10:51 GMT
Wed, 05 Mar 2025 00:36:55 GMT

Hong Kong Firm Sells Majority Stake in Panama Canal Ports to BlackRock

Wed, 05 Mar 2025 00:36:55 GMT
Tue, 04 Mar 2025 10:36:03 GMT

Trump's Influence Grows in Serb-Centric Bosnia Amid Ukraine Crisis

Tue, 04 Mar 2025 10:36:03 GMT
Mon, 03 Mar 2025 11:48:01 GMT

Hegseth Halts Cyber Offensive Against Russia Amid Diplomatic Efforts

Mon, 03 Mar 2025 11:48:01 GMT
Sun, 02 Mar 2025 17:56:06 GMT

Pentagon Expands Troop Deployment to U.S.-Mexico Border

Sun, 02 Mar 2025 17:56:06 GMT
Sat, 01 Mar 2025 14:52:43 GMT

Tensions Between Trump and Zelensky Highlight European Security Concerns

Sat, 01 Mar 2025 14:52:43 GMT
Sat, 01 Mar 2025 11:33:31 GMT

Tensions Rise Between Trump and Zelensky Over Ukraine Strategy**

Sat, 01 Mar 2025 11:33:31 GMT
Sat, 01 Mar 2025 01:12:23 GMT

Trump Signs New Directives to Protect U.S. Businesses and Counter Foreign Economic Aggression

Sat, 01 Mar 2025 01:12:23 GMT

Follow us

© 2024 SwissX REDD UK ltd. All Rights Reserved.