Biden Blocks Nippon Steel’s $15 Billion Bid for U.S. Steel, Citing National Security

The decision has strained U.S.-Japan economic ties, prompting legal action and diplomatic concerns over future investment between the allies.

President Joe Biden’s administration blocked Nippon Steel’s $15 billion acquisition of U.S. Steel, citing risks to national security and critical supply chains.
Nippon Steel and U.S. Steel have filed a federal lawsuit challenging the decision, arguing it violates U.S. law and undermines economic cooperation with Japan.
Japanese officials, including Prime Minister Shigeru Ishiba, criticized the decision, warning it could harm bilateral economic relations and discourage future Japanese investment in the U.S.
Outgoing Secretary of State Antony Blinken visited Japan to reaffirm the strength of the U.S.-Japan alliance, though the blocked deal has cast a shadow over the diplomatic relationship.
The rejection has drawn comparisons to U.S. trade restrictions on China, raising concerns among Japanese businesses about being treated similarly despite their close alliance with Washington.