The Biden administration’s decision to terminate the U.S. Steel acquisition triggered multiple lawsuits and a backlash from Japan.
President Joe Biden has blocked a roughly $15 billion takeover bid from Japan’s Nippon Steel. sick steel manufacturer friday, are discussing The deal posed a threat to U.S. national security and supply chain resilience. The decision sparked significant opposition from US Steel and Nippon Steel. filing A joint lawsuit alleging Biden violated constitutional rights and Japanese Prime Minister Shigeru Ishiba suggested blocking the deal could harm future U.S.-Japan investment. (Related: ‘Government overreach’: Liz Warren’s favorite agency gives itself new powers to regulate checking accounts)
Ishiba told reporters on Monday, “It is unfortunately true that there are voices of concern within Japanese industry regarding future Japanese-American investment.” According to To Business Times. “That’s something we have to take seriously.”
Biden made another terrible decision as he leaves office.
Blocking $15 billion in foreign direct investment in U.S.-based steel mills by one of our closest allies.
Shoot yourself in the foot for no reason. pic.twitter.com/BNDQiAYabz
— Alec Stapp (@AlecStapp) January 3, 2025
Ishiba also attacked the White House’s concerns about national security, suggesting that Biden had not adequately explained why the sale was a threat, the Business Times reported. It doesn’t work on this issue. ”
Japan will become the United States’ fifth largest trading partner in 2023 and the single largest source of U.S. foreign direct investment. According to to the State Department.
As of November, the United States had 55,000 military personnel stationed in Japan, and Japan obtains more than 90% of its defense imports from the United States. According to To the Pentagon. The two countries also cooperate closely on Iraq’s postwar reconstruction efforts and have conducted joint military exercises, such as the one conducted by the U.S. Marine Corps and Japan’s Mobile Amphibious Force in 2018.
Meanwhile, the U.S. Steel and Nippon Steel lawsuits accuse Biden of blocking the deal in order to gain support from the United Steelworkers union in November’s presidential election.
“President Biden ignored the rule of law and enlisted the support of the United Steel, Paper, Forestry, Rubber, Manufacturing, Energy, Industrial and Service Workers (USW) to support his political agenda.” Steele said. press release announced the state of the lawsuit. “As a result of President Biden’s use of undue influence to advance his political agenda, the Committee on Foreign Investment in the United States (“CFIU” or “Committee”) has failed to conduct an honest regulatory review process that emphasizes national security. Please give Nippon Steel and US Steel a fair opportunity to consider the transaction fairly. ”
US Steel and Nippon Steel have also filed lawsuits against steelmakers. cleveland cliffsCleveland Cliffs CEO Lourenco Goncalves and USW President David McCall accused the two companies of collaborating to undermine them, according to a press release.
Like Biden, President-elect Donald Trump has expressed opposition to the U.S. Steel acquisition.
President Trump: “Through a series of tax breaks and tariffs, we will make American steel strong and great again.” I wrote On December 2, he posted on his Truth Social platform, “As President, I will prevent this transaction from happening. Buyer beware!!”
The Biden administration did not respond to requests for comment.
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