BNN Bloomberg reports, this morning, President Joe Biden issued an order blocking the proposed sale of United States Steel Corporation (US Steel) to Japan-based Nippon Steel Corporation, “killing a high-profile deal that sparked a political firestorm and tensions between the US and Japan.” In an accompanying statement, the president commented, “A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains. That is because steel powers our country: our infrastructure, our auto industry, and our defense industrial base. Without domestic steel production and domestic steel workers, our nation is less strong and less secure.”
The proposed deal, which originated in 2023, was referred to the White House for scrutiny after an interagency panel tasked with reviewing foreign investments in US companies and properties was unable to reach a decision on the transaction’s national security implications. President Biden’s decision to block the sale is considered a victory for United Steelworkers union leadership.
The order leaves the future of financially challenged US Steel in doubt. However, both that company and Nippon Steel “have signaled that they may challenge the legal grounds of any [sale] block, raising the prospect that the matter will remain in dispute. President-elect Donald Trump has also pledged to block the transaction.”