The Biden administration’s decision to torpedo the acquisition of U.S. Steel has triggered multiple lawsuits and backlash from Japan.
President Joe Biden blocked a nearly $15 billion offer from Japan’s Nippon Steel to purchase the ailing steel manufacturer Friday, arguing the deal posed a threat to U.S. national security and supply chain resilience. The decision has sparked major backlash, with U.S. Steel and Nippon Steel filing a joint lawsuit alleging Biden violated their constitutional rights, and the Prime Minister of Japan, Shigeru Ishiba, suggesting the deal’s blockage could negatively impact future U.S.-Japan investment.
“It is unfortunately true that there are concerns being raised within Japan’s industrial world over future Japan-US investment,” Ishiba told reporters Monday, according to The Business Times. “It’s something we have to take seriously.”
Yet another terrible decision by Biden on his way out the door.
Blocking $15 billion of foreign direct investment in US-based steel plants from one of our closest allies.
Shooting ourselves in the foot for no reason. pic.twitter.com/BNDQiAYabz
— Alec Stapp (@AlecStapp) January 3, 2025
Ishiba also attacked the White House’s concerns regarding national security, the Business Times reported, suggesting Biden had not adequately explained why the sale posed a threat: “They need to be able to explain clearly why there is a national security concern, or else further discussions on the matter will not work.”
Japan was the fifth largest trading partner to the U.S. in 2023, and is the single largest source of U.S. foreign direct investment, according to the State Department.
As of November, the U.S. had 55,000 military personnel stationed in Japan, with the country acquiring over 90% of its defense imports from the U.S., according to the Pentagon. The countries also collaborated closely in postwar reconstruction efforts in Iraq and have held joint military exercises, such as those held by the U.S. Marines and Japanese Mobile Amphibious Forces in 2018.
Meanwhile, the U.S. Steel and Nippon Steel lawsuit accuses Biden of blocking the deal in order to win the support of the United Steelworkers union in the November presidential election.
“President Biden ignored the rule of law to gain favor with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (“USW”) and support his political agenda,” a U.S. Steel press release announcing the lawsuits states. “As a result of President Biden’s undue influence to advance his political agenda, the Committee on Foreign Investment in the United States (“CFIU” or the “Committee”) failed to conduct a good faith, national security-focused regulatory review process, depriving Nippon Steel and U. S. Steel of their rightful opportunity for fair consideration of the Transaction.”
U.S. Steel and Nippon also filed a lawsuit against steel producer Cleveland-Cliffs, Cleveland-Cliffs CEO Lourenco Goncalves and USW President David McCall, accusing them of collaborating to undermine the two companies, according to the press release.
Like Biden, President-elect Donald Trump has signaled opposition to the U.S. Steel takeover.
“Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again,” Trump wrote on his Truth Social platform on Dec. 2. “As President, I will block this deal from happening. Buyer Beware!!”
The Biden administration did not immediately respond to a request for comment.
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