Biden blocks Nippon Steel from buying US Steel

BBC News contacted Nippon Steel and US Steel for comment.

Nippon Steel has previously denied plans to cut output or cut jobs, while US Steel has warned it will be forced to close plants without further investment with a new owner.

These concerns were voiced by some workers and local politicians.

Other business groups have said they fear that rejecting the transaction will chill the international investment climate in the United States.

But Biden has long been against the deal. The deal has also been criticized by President-elect Donald Trump and incoming Vice President JD Vance.

A US government panel tasked with reviewing the deal on national security risks failed to reach a consensus by late December, leaving the decision up to Biden, who has 15 days to act.

In a statement Friday, he said maintaining U.S. ownership is essential to keeping the U.S. steel industry and its supply chains strong.

“As I’ve said time and time again, steelmaking — and the steelworkers who make it — are the backbone of our nation,” he said.

“That’s because steel makes our country strong: our infrastructure, our auto industry and our defense industrial base. Without local steelmaking and local steelworkers, our nation is less strong and less safe.”

Nippon Steel and US Steel have previously suggested they may take legal action against the government if the deal fails.