U.S. President Joe Biden has officially announced his decision to reject the acquisition of U.S. Steel, a major player in the American steel industry, by Japan's Nippon Steel. Biden cited potential risks to U.S. national security and critical supply chains as the primary reasons for his decision. Highlighting that the $14.9 billion deal would place one of the largest American steel producers under foreign control, Biden stated, “This is why I’m taking action to block this agreement.”
Biden emphasized that American steel companies have long faced unfair trade practices due to foreign firms selling steel in global markets at artificially low prices. He pointed out that these practices have led to job losses and factory closures in the U.S. To address this, Biden has tripled tariffs on steel imports from China, taking decisive steps to create a level playing field for American steelworkers and producers. He also noted that, under his administration, record-breaking investments in production have led to the opening of more than 100 new steel and iron factories, and that the U.S. steel industry is currently at its strongest point in years.
The decision to block the sale of U.S. Steel followed the U.S. Committee on Foreign Investment (CFIUS) failing to reach a final consensus on the merger and subsequently submitting its report to Biden. Nippon Steel had attempted to secure approval for the deal by offering the U.S. government veto power over production changes at U.S. Steel facilities and pledging to maintain production levels at six factories across multiple states for the next ten years. However, these efforts were insufficient to change the outcome.
Biden’s decision is seen as a strong statement of his commitment to safeguarding national interests and maintaining the independence of the American steel industry.
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