Washington, D.C. – President Joe Biden is set to weigh in on the proposed acquisition of US Steel by Nippon Steel, a move that could potentially disrupt the deal and strain relationships with Japan. The statement, expected to be released before Japanese Prime Minister Fumio Kishida’s visit to Washington on April 10, expresses deep concerns about the $14.9 billion deal.
US officials and legal experts have been involved in crafting the statement, which has stirred unease among the Japanese government and led to a drop in US Steel’s shares by over 12%. While Biden will not outright block the acquisition on national security grounds, he is anticipated to convey sentiments similar to those previously voiced by White House economic adviser, Lael Brainard.
The deal, announced by Nippon Steel in December, has sparked bipartisan outrage in Washington and put Biden in a delicate position between supporting a powerful union and maintaining a critical alliance with Japan. The President’s stance is particularly crucial as Pennsylvania, a swing state in the upcoming election, where both Biden and former President Donald Trump have sought union support.
Despite conflicting interests and mounting political pressure, Nippon Steel remains steadfast in its bid for US Steel. The President’s intervention at this critical juncture, just as Nippon Steel submitted its proposal to the Committee on Foreign Investment in the US (Cfius), has raised eyebrows and drawn mixed reactions.
As the situation unfolds, stakeholders on all sides are closely monitoring Biden’s actions, recognizing the potential implications on US-Japan relations, the American steel industry, and broader economic partnerships. The decision reached by the White House in the coming days may not only impact this specific acquisition but could have far-reaching consequences for foreign investments in the US and international trade dynamics.