Joe Biden ‘Sacrificed’ US Workers for Own Political Agenda—Nippon Steel

Nippon Steel, the company President Joe Biden reportedly blocked from buying United States Steel Friday, said it was “dismayed” by a decision that “sacrificed the future of American steelworkers.”

In a joint statement with U.S. Steel, the Japanese company accused Biden of breaking the law to serve his own political agenda just a few weeks before leaving the White House. Biden said he was protecting national security and keeping the company in American hands.

Newsweek reached out to the White House via email for comment.

Why It Matters

Biden’s decision, first reported by The Washington Post, effectively handed President-elect Donald Trump a political gift after the Republican also spoke out against the potential takeover, saying he was “totally against” it in December.

The $14.9 billion deal, backed by shareholders, was questioned by the Committee on Foreign Investment in the U.S. (CFIUS), which said the takeover could pose a national security threat with such a historic brand being run by a foreign entity.

What To Know

Nippon Steel’s statement first attacked Biden for his role in the decision before saying that the transaction would revitalize communities built around the steel industry.

“Nippon Steel is the only partner both willing and able to make the necessary investments to protect and grow U.S. Steel as an iconic American company for the benefit of the communities in which it operates and the entire American steel industry,” the statement read.

“In short, we believe that President Biden has sacrificed the future of American steelworkers for his own political agenda.”

Nippon has planned $2.7 billion in investments, including at least $1 billion in improvements to the Mon Valley Works and approximately $300 million earmarked for the Gary Works.

The company said it would explore all legal routes to keep the deal standing, touting its compliance with the CFIUS review while claiming the process had been “corrupted by politics.”

Nippon Steel said it had tried to appease concerns, including promises that U.S. Steel would keep an all-American board and senior leadership team and that jobs would not be outsourced to other countries.

Despite these promises, Biden’s move appeared to play into Trump’s rhetoric of “America first” by keeping the Pennsylvania-based company in American hands. The incoming president would have likely blocked the deal if Biden had not.

What People Are Saying

President Joe Biden, in a statement: “A committee of national security and trade experts determined that a Nippon Steel acquisition of U.S. Steel would place one of America’s largest steel producers under foreign control and create risk for our security and supply chains.”

Nippon Steel, in a statement: “CFIUS did not give due consideration to a single mitigation proposal offered by the Parties, as evidenced by the absence of any written feedback to the four robust national security agreements that the Parties proactively offered over 100 days. We are deeply disappointed to see President Biden’s decision today.”

Pennsylvania Governor Josh Shapiro, in a statement: “Over the past year, I have worked to bring the parties involved together to protect Pennsylvania jobs, secure commitments to make major investments in our Commonwealth, and stand up for the Pennsylvania workers who built U.S. Steel from the ground up.”

Scott Lincicome, vice president of general economics at the Cato Institute, in a blog post: “It was about politics—in particular, USW pressure on Biden and other administration officials to block the deal and, as the Pittsburgh Post-Gazette reported last month, U.S. steelmaker Cleveland Cliffs’s herculean lobbying efforts to stymie a possible new competitor in the captive (thanks to tariffs and other protectionism) US steel market.”

What’s Next

Nippon Steel has promised to fight the decision, saying that it believes the deal is the best way to keep the U.S. steel industry going and thriving in the global marketplace.

Pennsylvania Governor Josh Shapiro said he believed the matter was “far from over” and that a long-term solution was needed to protect steelmaking in Pennsylvania.