Japan’s investments in US set to go on despite Nippon Steel’s takeover setback

On January 3, Biden blocked Nippon Steel Corp’s US$14.9 billion bid for US Steel Corp, citing national security concerns, slightly over a year after Nippon made its offer in December 2023.

Biden said in a statement that he had the “responsibility to block foreign ownership of this vital American company”, and that “US Steel will remain a proud American company – one that’s American-owned, American-operated, by American union steelworkers”.

Nippon Steel CEO Eiji Hashimoto said on Tuesday that tariffs alone would not strengthen the US steel industry, arguing that the merger would bolster US national security by creating a strong steel company as well as ensure a more resilient steel supply chain, especially in the face of global competition.

Matthew Goodman, director of the Council on Foreign Relations’ RealEcon initiative, which explores the role of the US in the international economy, said Biden’s decision to block Nippon Steel’s acquisition of US Steel was counterproductive to his stated objectives of protecting America’s national security and strengthening supply-chain resilience.