Payam Javan: President Joe Biden has officially rejected Nippon Steel’s $14.1 billion bid to acquire Pittsburgh-based U.S. Steel, citing national security concerns and the importance of maintaining domestic ownership of key American industries. The decision, announced Friday, follows a divided recommendation from the Committee on Foreign Investment in the United States (CFIUS), which highlighted potential risks but did not reach a consensus. Biden emphasized the strategic need for major U.S. steelmakers to remain under American control, reaffirming his stance from March when he initially voiced opposition to the deal.

The rejection has sparked controversy, with critics warning it could strain U.S.-Japan relations, given Japan’s status as America’s largest Asian ally and a major holder of U.S. debt. While supporters like the U.S. Chamber of Commerce argue the deal could have bolstered U.S. Steel’s operations and competitiveness, labor unions and political leaders raised concerns over potential job losses, labor agreement violations, and national security risks. Nippon Steel had pledged to retain U.S. Steel’s name and Pittsburgh headquarters, but skepticism persisted regarding its broader implications for the American workforce and economy.

This decision comes amid shifting political landscapes, with President-elect Donald Trump also opposing the merger and vowing to implement tariffs and tax incentives to strengthen domestic steel production. Union leaders welcomed Biden’s rejection, urging a renewed focus on U.S. Steel’s future under American ownership. Despite bipartisan opposition to the deal, some prominent figures like former Secretary of State Mike Pompeo criticized the move as shortsighted, arguing that the acquisition could have enhanced the competitiveness of the U.S. steel industry while benefiting workers and local communities.