Biden prevents Japan's Nippon Steel from acquiring U.S. Steel, invoking national security concerns.

• Nippon Steel's $14.9 billion takeover of U.S. Steel has been officially blocked by President Joe Biden.
• The proposed deal would put one of the largest U.S. steel producers under foreign control, potentially endangering the country's critical supply chains, according to Biden.
• U.S. Steel's stock tumbled in premarket trading Friday.

On Friday, President Biden prevented Japan's Nippon Steel from acquiring the century-old industrial name, fulfilling his pledge to keep it under domestic ownership.

The acquisition of a large steel producer in the U.S. by Nippon for $14.9 billion could put the nation's critical supply chains at risk, as it would place one of the largest steel producers under foreign control.

Biden stated that he is fully committed to utilizing all available authorities as President to protect U.S. national security, including ensuring that American companies remain central in critical sectors.

Nearly 8% of U.S. Steel's stock dropped in premarket trading Friday after the president made an announcement.

Biden's decision to block the sale of U.S. Steel to Nippon was made after a months-long review by the Committee on Foreign Investment in the United States, with the president having expressed his intention to do so as early as March 2024.

The bipartisan swing toward protectionism in the U.S. is underscored by Biden's decision to torpedo the deal, as both Democrats and Republicans seek to maintain domestic control over key industries amid escalating geopolitical tensions worldwide.

President-elect Donald Trump also opposed the deal.

Washington's efforts to contain China's ambitions in the Indo-Pacific region are not immune to the growing protectionist sentiment, as evidenced by Biden's decision to block the sale to Japan.

The deal between U.S. Steel and Nippon is the best way to maintain competitiveness, revitalize rust belt communities, and enhance national security, as stated by both companies. However, U.S. Steel CEO David Burritt has previously warned that the company may have to shut down plants if the deal fails.

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