A water tower at the Edgar Thomson Works steel mill in Braddock, Pennsylvania, on September 4, 2024.
Justin Merriman | Bloomberg | Getty Images
President Joe Biden on Friday formally blocked the takeover United States steel By Nippon Steel Corporation of Japan, fulfilling its promise to maintain a more than century-old industrial name under local ownership.
Biden said the proposed $14.9 billion takeover of Nippon would put one of the largest U.S. steel producers under foreign control, creating a risk to the country's vital supply chains.
“Today’s action reflects my steadfast commitment to using all the powers available to me as President to defend America’s national security, including by ensuring that American companies continue to play a central role in sectors that are vital to our national security,” Biden said. He said in a statement.
US Steel stock fell nearly 8% in premarket trading Friday after the president's announcement.
Biden's decision to torpedo the deal highlights a bipartisan shift toward protectionism in the United States, with Democrats and Republicans alike seeking to maintain domestic control over key industries as geopolitical tensions mount around the world.
President-elect Donald Trump also opposed the deal.
The White House's move to block the sale shows that even staunch allies like Japan are not immune to the rising tide of protectionism. Tokyo plays a pivotal role in Washington's efforts to keep China's ambitions in the Indo-Pacific region under control.
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