Biden Blocks Sale of U.S. Steel to Nippon Steel Citing National Security Concerns

President Joe Biden announced Friday his decision to block the proposed $15 billion sale of U.S. Steel to Nippon Steel, a Japanese-owned company.

The announcement followed a yearlong review of the potential acquisition by the Committee on Foreign Investment in the United States (CFIUS), a panel of national security and trade experts across the executive branch.

“We need major U.S. companies representing the significant share of U.S. steelmaking capacity to keep leading the fight on behalf of America’s national interests,” Biden said in a statement.

He emphasized that placing one of the nation’s largest steel producers under foreign control would pose risks to national security and critical supply chains. “That is why I am taking action to block this deal,” he added.

The decision comes after months of mounting concerns from lawmakers, union leaders, and steelworkers, particularly in Pennsylvania, about the implications of the transaction for outsourcing jobs, union protections, and the stability of U.S. supply chains.

Nippon Steel first announced its intention to purchase U.S. Steel in December 2023. The proposed deal immediately triggered opposition, with many warning it could weaken domestic steel production and jeopardize American workers.

In March, Biden signaled his intent to oppose the transaction, calling it “vital” for U.S. Steel to remain domestically owned and operated. On Friday, he reiterated that position, describing the domestic steel industry as “the backbone of our nation.”

“A strong, domestically owned and operated steel industry is an essential national security priority and critical for resilient supply chains,” Biden said.

“Steel powers our country: our infrastructure, our auto industry, and our defense industrial base. Without domestic steel production and domestic steelworkers, our nation is less strong and less secure.”

U.S. Steel and Nippon Steel had both expressed hope that the Biden administration would approve the deal. Nippon Steel even suggested it might pursue legal action if the acquisition was blocked.

However, Biden’s announcement effectively ends the possibility of the sale moving forward.

President-elect Donald Trump had also voiced opposition to the deal, vowing to block Nippon Steel’s efforts to acquire U.S. Steel if the transaction remained unresolved when he took office.

The bipartisan resistance underscores the political sensitivity surrounding the steel industry, which is closely tied to national security and the economy.

The decision was welcomed by the United Steelworkers union, whose president, David McCall, issued a statement praising Biden’s move. “We have no doubt that it’s the right move for our members and our national security,” McCall said.

“Throughout the past year, as the proposed transaction was under review, our union’s first and only concern has been the long-term viability of our facilities as we look to ensure a strong domestic steel industry well into the future.”

The steel industry plays a critical role in the U.S. economy, supporting infrastructure development, manufacturing, and defense production.

Many experts argue that foreign control of a major steel producer like U.S. Steel could compromise the country’s ability to meet domestic and defense needs during times of crisis.

Pennsylvania Governor Josh Shapiro (D) acknowledged Biden’s decision as a necessary step but stressed the need for a more comprehensive approach to stabilize the steel industry.

“This matter is far from over,” Shapiro said in a statement. “A long-term solution is needed to ensure the stability of the steel industry in the commonwealth.”

CFIUS’s yearlong review reflected the complex considerations at play, as the White House balanced economic, security, and political factors.

The decision also highlights the administration’s focus on bolstering union support and projecting strength on economic issues, particularly as Biden and Vice President Harris court key voting blocs ahead of the next election.

By blocking the deal, Biden sends a strong message about the importance of protecting domestic industries critical to national security.

His administration’s stance aligns with a broader effort to prioritize American jobs, infrastructure, and supply chains in a competitive global economy.

For now, U.S. Steel remains under American ownership, providing a reprieve for union workers and lawmakers who view the company’s domestic operation as essential to the nation’s strength and security.