President Biden blocks sale of US Steel to Japanese company
In blocking the sale to Nippon Steel, Biden said U.S. Steel "will remain a proud American company – one that’s American-owned and American-operated."
WASHINGTON − President Joe Biden on Friday blocked the sale of U.S. Steel to a Japanese buyer in an extraordinary use of presidential power he said protects an American industry vital to national security.
Biden issued an order blocking Nippon Steel Corp.'s proposed $14.9 billion purchase of Pittsburgh-based U.S. Steel, citing his presidential authority under the Defense Production Act of 1950 and calling the steel industry "critical for resilient supply chains."
In a statement, Biden said U.S. Steel "will remain a proud American company" that is "American-owned (and) American-operated by American union steelworkers."
Biden, who was endorsed by the United Steelworkers union before he dropped out of the 2024 presidential election, had publicly opposed the sale, which was announced in December 2023.
For months, the Committee on Foreign Investment in the United States reviewed the deal with Nippon Steel for national security risks but failed to reach a consensus and referred the decision to Biden in December. The panel reviews the effect transactions may have on national security.
U.S. Steel has operated out of Pittsburgh since 1901 and is the nation's second-largest steel manufacturer. U.S. Steel employs 21,803 workers, roughly half the workforce it boasted 15 years ago after years of setbacks in the U.S. steel industry.
"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," Biden said. "And it is a fulfillment of that responsibility to block foreign ownership of this vital American company."
'Dismayed'
In a joint statement, U.S. Steel and Nippon Steel said it was "dismayed" by Biden's decision, calling it "a clear violation of due process and the law governing CFIUS." The companies said blocking the sale will deny billions of dollars in investments planned in the U.S. and vowed to take "all appropriate action to protect our legal rights."
"Instead of abiding by the law, the process was manipulated to advance President Biden’s political agenda," the statement said. "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."
Biden's decision also drew pushback from some Democratic allies.
"President Biden claiming Japan's investment in an American steel company is a threat to national security is a pathetic and craven cave to special interests that will make America less prosperous and safe," Jason Furman, a former economic adviser in the Obama administration, wrote on X. "I'm sorry to see him betraying our allies while abusing the law."
Trump also opposed sale
President-elect Donald Trump, who takes office Jan. 20, also had committed to blocking the sale.
Biden said American steel mills have faced unfair trade practices as foreign companies "have dumped steel on global markets at artificially low prices, leading to job losses and factory closures in America."
In April, Biden raised the rates of tariffs on steel and aluminum from China amid pressure from labor unions.
"Today’s action reflects my unflinching commitment to utilize all authorities available to me as President to defend U.S. national security, including by ensuring that American companies continue to play a central role in sectors that are critical for our national security," Biden said.
"As I have made clear since day one: I will never hesitate to act to protect the security of this nation and its infrastructure as well as the resilience of its supply chains."
Contributing: Reuters
Reach Joey Garrison on X @joeygarrison.