Biden Intervenes in U.S. Steel Sale, Advocates for Domestic Ownership and Operation

In a significant move, President Joe Biden announced on Friday the decision to block the sale of U.S. Steel to Japan’s Nippon Steel. This action underscores Biden’s commitment to maintaining a domestically owned steel industry as one of the final decisions of his presidency.

Biden had previously expressed concerns regarding the foreign acquisition of U.S. Steel, declaring the need for domestic control over major national resources. The transaction, valued at approximately $14.1 billion, was under careful examination by the Committee on Foreign Investment in the United States (CFIUS).

“We require major U.S. companies that dominate steelmaking to protect our national interests,” Biden stated. He cited an assessment from national security experts indicating that by placing U.S. Steel under foreign ownership, the deal posed risks to national security and critical supply chains.

“Blocking this acquisition is my responsibility as President. It ensures a robust, domestic steel industry that safeguards our strengths at home and abroad,” he continued. Biden emphasized U.S. Steel’s identity as an American-owned entity operated by union steelworkers.

The proposed sale faced strong opposition from the United Steelworkers Union, which had been vocal in urging Biden to maintain U.S. Steel’s domestic status. Following the announcement, USW President David McCall praised the decision, affirming it as beneficial for both union workers and national security.

“We appreciate President Biden’s decisive action to preserve American jobs and our steel industry,” McCall said. He expressed confidence in U.S. Steel’s potential for responsible management and continued support for workers.

In contrast, U.S. Steel and Nippon Steel expressed disappointment over the decision, stating they would consider legal avenues to protect their interests. They highlighted the potential investment from Nippon that could have revitalized aging U.S. facilities.

“This block denies billions in investments that would benefit American steelworkers and jeopardizes thousands of union jobs,” the companies asserted in their joint statement. They criticized the CFIUS process as politically influenced and predetermined.

U.S. Steel’s CEO, David B. Burritt, described the decision as “shameful and corrupt.” He argued that the action would ultimately harm the company and its workforce, suggesting it was politically motivated in favor of union interests over economic realities. Burritt claimed it jeopardized American competitiveness and disrespected international relations, specifically with Japan.

Biden’s order, executed under the Defense Production Act, allows presidential intervention in industrial matters when national security is at stake. The president’s rationale centered on the critical need for a strong domestic steel industry.

Last updated 3:51 p.m., Jan. 3, 2025