Water tower at US Steel Corp. steel mill. Edgar Thomson Works in Braddock, Pennsylvania, on September 4, 2024.
Justin Merriman | Bloomberg | Getty Images
President Joe Biden officially blocked the takeover on Friday American steel by Japanese company Nippon Steel, keeping its promise to keep an industrial name more than a century old in domestic hands.
Biden said the proposed $14.9 billion takeover by Nippon would put one of the largest U.S. steel producers under foreign control, posing a risk to key supply chains at home.
“Today's action reflects my unwavering commitment to use every authority at my disposal as president to defend U.S. national security, including by ensuring that American companies continue to play a central role in sectors critical to our national security.” – Biden – wrote in the statement.
After the president's statement, US Steel shares fell by almost 8% in pre-market trading on Friday.
Biden's decision to torpedo the deal underscores a bipartisan shift toward protectionism in the U.S. as both Democrats and Republicans seek to maintain domestic control over key industries amid escalating geopolitical tensions around the world.
President-elect Donald Trump also opposed the agreement.
Biden's decision to block the sale shows that even staunch allies like Japan are not immune to the rising tide of protectionism. Tokyo plays a key role in Washington's efforts to control China's ambitions in the Indo-Pacific region.
U.S. Steel and Nippon said the deal is the best way to keep the company competitive, revitalize communities in the U.S. Rust Belt and strengthen national security. US Steel CEO David Burritt previously warned the company would likely close plants if the deal fell through.
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