Keystone-SDA
Joe Biden announced on Friday that he was blocking the planned takeover of the big American steel name US Steel by the Japanese giant Nippon Steel, a very political decision which risks creating tensions with Tokyo.
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January 3, 2025 – 4:48 p.m.
(Keystone-ATS) This merger, which has shaken economic and political spheres in both 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” , justified the outgoing American president.
The United States is the world’s largest importer of steel, a sector overwhelmingly dominated by China.
“I will never hesitate to act to protect the security of this country and its infrastructure,” insisted the 82-year-old Democrat, whom his advisors had warned of the possible diplomatic consequences of this blockage, according to the American press.
Joe Biden, great champion of American reindustrialization, 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 steel issue, to put domestic considerations first.
He had already not hesitated to provoke a crisis with France in 2021 by snatching a gigantic submarine contract with Australia.
Trump also opposed
Joe Biden must cede power on January 20 to Republican Donald Trump.
The president-elect, who campaigned on a message of economic sovereignty and protectionism, also assured that he would prevent this friendly takeover, initially announced in December 2023.
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 2024 American presidential campaign, because it primarily concerns Pennsylvania, an electorally strategic state, which is also the cradle of the steelworks in the United States.
The very influential American metalworkers union vigorously opposed the merger, which Nippon Steel described instead as a real lifeline for a struggling industrial sector.
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.
