President Joe Biden announced plans on Friday to block the proposed $14 billion acquisition of U.S. Steel, a Pennsylvania-based company, by Japanese firm Nippon Steel.
The decision, supported by incoming President Donald Trump, Senator John Fetterman, and the United Steelworkers Union, reflects bipartisan opposition rooted in concerns over national security and the preservation of domestic 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 natural sources of strength at home and abroad,” Biden stated. “And it is a fulfillment of that responsibility to block foreign ownership of this vital American company.”
The formal order reads:
“The proposed acquisition of U.S. Steel by the Purchasers (Proposed Transaction) is prohibited, and any substantially similar transaction between the Purchasers and U.S. Steel, whether effected directly or indirectly by the Purchasers, through the Purchasers’ shareholders or shareholders’ immediate, intermediate, or ultimate foreign person beneficial owners, or through the Purchasers’ partners, subsidiaries, or affiliates is also prohibited.”
Donald Trump, Biden’s frequent political rival, echoed opposition to the deal. Writing on his platform Truth Social earlier this month, Trump said, “I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan. As President, I will block this deal from happening. Buyer Beware!!!”
Despite their differences, Biden and Trump’s alignment underscores shared concerns about the strategic importance of maintaining domestic control over critical industries.
The decision has sparked debate about its potential impact on foreign investment in the U.S. While The New York Times and other outlets suggest it could deter future investments, Trump recently sent a contrasting message, promising swift approvals for billion-dollar investments. “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!” Trump declared.
Nippon Steel, in response to the growing backlash, issued a statement emphasizing its commitment to preserving and enhancing U.S. Steel’s role in American industry and national security.
The United Steelworkers Union, which represents many of U.S. Steel’s employees, has staunchly opposed the sale. “The proposed sale is bad for workers, our communities, and the domestic industry — as well as our national security, critical infrastructure, and domestic supply chains,” the union stated. They credited Trump’s previous tariffs with saving the steel industry and endorsed his stance against the acquisition.
Senator John Fetterman, who lives across the street from U.S. Steel’s Edgar Thomson plant in Braddock, also voiced strong opposition. “They can’t create a narrative that there’s an uprising and everyone is all supporting this,” Fetterman said. “Not one resident has approached me and [said] we got to make this happen. Not once.”
Founded in 1901, U.S. Steel remains a symbol of American industrial strength. The opposition to Nippon Steel’s acquisition reflects broader anxieties about foreign control over critical infrastructure and its potential impact on jobs, supply chains, and national security.
As the Biden administration takes steps to block the deal, it sends a clear message: safeguarding domestic industry and national security remains a top priority, even in an increasingly globalized economy.
