US Steel's Edgar Thomson plant in North Braddock (Pennsylvania), United States, June 4, 2024 (AFP / Rebecca DROKE)
US Steel and Nippon Steel threatened legal action after President Joe Biden announced Friday that he was blocking the Japanese giant's planned takeover of the American steel giant, a decision with high political and geopolitical stakes. .
This merger, which has agitated the two allied countries for a year, “would place one of the largest American steel producers under foreign control and pose risks to our national security and our essential supply chains”, explained the president American.
“A strong, domestically owned and operated steel industry is a key priority,” he insisted.
The United States is the world's largest importer of steel, a sector overwhelmingly dominated by its great rival, China.
Japanese Minister of Economy, Trade and Industry Yoji Muto considered it “incomprehensible and regrettable that the Biden government has made a decision of this type citing concerns for national security”, according to a press release sent to the AFP.
“This is not a decision against Japan, we have been in contact with them and shared our impressions,” assured White House spokesperson Karine Jean-Pierre during a press briefing. .
“The President remains confident that American steel and American workers will continue to grow because of what he has already accomplished. The steel industry is stronger than it has been in a long time “added the spokesperson.
The subject is the subject of a rare consensus on a very tense and divided political scene, while Joe Biden must hand over the keys of the White House to President-elect Donald Trump on January 20.
– “No credible evidence” –
US President Joe Biden during a speech at the White House, in Washington, United States, January 3, 2025 (AFP / Chris Kleponis)
The USW metalworkers' union said it was “grateful” for the outgoing president's decision to “maintain a strong steel industry in the country.”
In a statement, he also called on US Steel management to “make the decisions necessary to grow the company and keep it profitable.”
But the two steel groups denounced this decision, seeing it as “a clear violation” of the law and threatening to “take all appropriate measures”.
“The process was manipulated to push President Biden’s political agenda,” the two companies accused in a joint statement.
According to them, the president has presented “no credible evidence of a national security problem”. “Unfortunately, this will chill any company based in an allied country that plans to invest heavily in the United States.”
A great champion of reindustrialization, the president has also worked for four years to relaunch the United States' international alliances, particularly in Asia.
He led particularly active diplomacy with Japan, seen as a strategic ally in the region. But he therefore chose, in this matter, to put internal political considerations first.
Donald Trump, who campaigned on a message of economic sovereignty and protectionism, also assured that he would prevent this merger, initially announced in December 2023.
– “Competitive threat from China” –
The factory of Japanese steel giant Nippon Steel in Kitakyushu, Japan, February 16, 2024 (AFP / Philip FONG)
A panel responsible for assessing the consequences of the possible takeover on the national security of the United States refused to rule at the end of December, referring the question to Joe Biden, who had 15 days to decide.
The operation found itself at the heart of the presidential campaign, because it primarily concerns Pennsylvania, an electorally strategic state and also the cradle of the steelworks in the United States.
The Japanese group endeavored to overcome Joe Biden's reluctance by offering multiple guarantees and attractive conditions.
In particular, according to the press, he proposed that the American government have a right of veto over any potential reduction in US Steel production in the United States.
The Japanese steelmaker was also committed to maintaining employment and had promised at least $2.7 billion in investments in unionized industrial sites, as well as a $5,000 bonus for US Steel employees in the event of acquisition.
US Steel, for its part, also campaigned for this takeover, described as a way to “fight the competitive threat from China” and ensure the future prosperity of the company.
The markets reacted negatively to Joe Biden's decision, with US Steel shares ending the session on Wall Street with a fall of 6.53%, to $30.47.
