Islamabad, Jan 4: President Joe Biden has blocked a $14.9 billion acquisition by Nippon Steel of US Steel, citing concerns over national security and the potential risks to critical domestic supply chains.
Key Details
- National Security Concerns: Biden’s administration argued that the acquisition would place a major American steel producer under foreign control, potentially compromising national security.
- Bipartisan Support: Both Republicans and Democrats were united in opposing the deal, with figures like Donald Trump and JD Vance voicing their opposition.
- USW Support: The United Steelworkers union praised Biden’s decision, seeing it as a move to protect American workers and the steel industry.
Reactions from the Companies
- Nippon Steel and US Steel criticized the decision, accusing the Biden administration of making a political move without providing credible evidence of a national security threat.
- The companies expressed concerns that the decision could discourage investment from US allies.
Biden’s Trade Policy
Biden, who has focused on revitalizing US manufacturing, especially the steel industry, emphasized his protectionist policies, including higher tariffs on steel imports from countries like China, to strengthen domestic production.
The decision adds another layer of complexity to the US’s relations with Japan, with officials from both sides expressing disappointment and concern.
