Japanese steel giant Nippon Steel has announced plans to sue the U.S. government after President Joe Biden blocked its $14.9 billion acquisition of US Steel, citing national security concerns. The move, made less than three weeks before Biden leaves office, has sparked controversy and legal action from both companies involved.
In a joint statement on Friday, Nippon Steel and US Steel described the decision as a “clear violation of due process and the law.” They criticized the administration’s claims, stating, “The President’s statement and order do not present any credible evidence of a national security issue, making clear that this was a political decision.”
President Biden defended his action, emphasizing the strategic importance of protecting the domestic steel industry and safeguarding critical supply chains. “This acquisition would place one of America’s largest steel producers under foreign control and create risks for our national security,” he said.
The decision followed a lack of consensus by a government panel last month on whether the acquisition posed a security threat, leaving the final call to Biden. The United Steelworkers union welcomed the move, with USW International President David McCall praising Biden for taking “bold action to maintain a strong domestic steel industry.”
However, the decision has led to economic fallout, with US Steel’s shares plummeting over 5% in early trading. The deal’s rejection also adds strain to U.S.-Japan relations, as Nippon Steel had pitched the acquisition as a revival strategy for US Steel, a company struggling to regain its former glory.
The blocked sale drew rare bipartisan opposition, with President-elect Donald Trump and incoming Vice President JD Vance also opposing the deal during their campaigns. Critics of the acquisition warned that Japanese ownership could result in job cuts, further fueling resistance to the takeover.
As legal proceedings loom, the decision underscores the Biden administration’s commitment to prioritizing domestic manufacturing and its broader economic and political implications.
