Japanese Prime Minister Shigeru Ishiba has formally requested U.S. President Joe Biden to approve Nippon Steel’s $15 billion acquisition of U.S. Steel, emphasizing the strategic importance of the Japan-U.S. alliance. Ishiba’s plea was delivered in a letter sent on November 20, as confirmed by sources familiar with the matter.
The deal faces opposition from Biden and influential U.S. labor unions, prompting a review by the Committee on Foreign Investment in the United States (CFIUS), a body that evaluates foreign investments for national security risks. With the review deadline approaching next month, the decision holds urgency, especially before President-elect Donald Trump—who has opposed the deal—takes office on January 20. CFIUS may approve the acquisition with conditions, block it outright, or extend its review.
In the letter, Ishiba highlighted Japan’s position as the largest foreign investor in the U.S., underlining the mutual benefits of sustaining this trend. He noted, “This Alliance has reached unprecedented strength under your presidency. We respectfully ask for the U.S. government to approve the planned acquisition by Nippon Steel so as not to cast a shadow on our achievements.”
This marks a shift in Japan’s approach, as Ishiba’s predecessor, Fumio Kishida, had distanced his administration from the deal, framing it as a private business matter. However, Ishiba’s government is now actively advocating for its approval amid concerns about potential damage to bilateral relations.
The acquisition has been controversial due to concerns raised by CFIUS about risks to the U.S. steel supply chain, critical to national security. Ishiba, who recently met Biden at an international summit, noted in his letter that time constraints had prevented in-depth discussions on the matter and that the correspondence was intended to stress its significance at this “critical juncture.”
Nippon Steel has made several guarantees and investment pledges to address concerns. Ishiba reiterated these commitments, emphasizing that the deal would preserve U.S. Steel jobs, enhance competitiveness through technological collaboration, and boost steel production capacity and employment in the U.S.
Neither Biden’s office nor Ishiba’s administration has commented publicly on the letter. Nippon Steel and U.S. Steel also refrained from responding outside of business hours.
The CFIUS decision remains pivotal, as its outcome will have implications for the steel industry and broader Japan-U.S. economic relations.