Exclusive: US Warns Nippon Steel Bid for U.S. Steel Poses National Security Risk

The Biden administration, through the Committee on Foreign Investment in the United States (CFIUS), warned Nippon Steel that its $14.9 billion acquisition of U.S. Steel poses a national security threat by potentially weakening the American steel industry. Both Democrats and Republicans have voiced opposition to the deal, with Vice President Kamala Harris and former President Donald Trump expressing strong desires to keep U.S. Steel under American ownership. In a letter sent to the companies, CFIUS highlighted concerns that the transaction would harm U.S. steel production and diminish efforts to seek trade remedies. In their response, the companies warned that rejecting the deal could lead to the idling of U.S. Steel’s blast furnace facilities, result in thousands of job losses, and ultimately weaken the U.S. steel supply chain. While Nippon Steel and U.S. Steel maintain that the deal would strengthen the industry and pose no security risks, political pressures and economic concerns are at the heart of the debate, as the companies consider their legal options to move forward.