2025 Update: Biden Opposes $14.9B Nippon Steel Acquisition of U.S. Steel

Diccon Hyatt is a seasoned financial and economics journalist with extensive experience covering pandemic-era economic shifts. He specializes in translating complex financial issues into clear, relatable insights, focusing on how economic trends impact personal finances and markets. His work includes contributions to U.S. 1, Community News Service, and the Middletown Transcript.

• President Joe Biden publicly opposes the $14.9 billion bid by Nippon Steel to acquire U.S. Steel, stressing the need to keep the company American-owned.
  
• While federal regulators and the president have the authority to block foreign takeovers, such interventions are infrequent.
  
• Biden aligns with labor unions, including the United Steelworkers, who have voiced strong opposition to the deal.
  

On Thursday, the prospect of Nippon Steel acquiring America’s second-largest steel producer, U.S. Steel, faced significant resistance after President Joe Biden expressed his opposition. Although Biden did not explicitly state whether he would use his authority to block the $14.9 billion deal, his stance signals a protective approach toward American steel industry ownership.

“Maintaining robust American steel companies driven by American workers is crucial,” Biden said in a statement. “U.S. Steel has been a symbol of American industry for over a century, and it must remain domestically owned and operated.”

Following Biden’s comments, U.S. Steel’s stock dropped 6.4% to $38.26, reaching its lowest level since the acquisition announcement in December. This decline reflects market uncertainty about the deal’s future.

Biden’s opposition aligns with the United Steelworkers union, which has criticized the acquisition since its announcement. Despite Nippon Steel’s assurances to honor existing union contracts, the union remains skeptical about the company’s commitment and capacity to uphold these agreements.

As a president known for strong union support—labeling his administration the most pro-union in U.S. history—Biden’s position is significant during an election year.

Nippon Steel has attempted to gain union support by pledging facility upgrades and no layoffs until at least 2026, while maintaining U.S. Steel’s name and Pittsburgh headquarters, a historic steel industry hub. However, union leaders have yet to be convinced, welcoming Biden’s call for domestic ownership.

Should Biden intervene to block the acquisition, it would be a rare use of presidential power. Since 2008, the Treasury Department’s Committee on Foreign Investment in the United States has only blocked six foreign takeovers, underscoring the unusual nature of such a move.

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