A Case For, Against Nippon's U.S. Steel Buy

On January 3 2025, President Joe Biden announced he was suspending the purchase of U.S. Steel by Japan’s Nippon Steel, citing the sale as a potential threat to national security. The announcement provoked both positive and negative responses from American steel industry leaders. The United Steelworkers union (USW) put out a press release shortly after Biden’s announcement, commending the soon to be ex-president for blocking the deal and even going as far as to accuse Nippon of being a “serial trade cheater” that has “worked to undermine our domestic industry by dumping its products into our market.” Cleveland-Cliffs, a domestic competitor of U.S. Steel, also delivered a statement applauding the “reported” decision back in September of 2024. It is also worth noting that Cleveland Cliff’s had previously attempted to acquire U.S. steel in 2023, and in September of 2024 expressed interest in purchasing unionized U.S. Steel mills that could face closure should the deal remain blocked.