U.S. Steel slams Biden’s decision to block acquisition as ‘Shameful’
U.S. Steel has fiercely criticized President Joe Biden‘s decision to block its acquisition by Japan‘s Nippon Steel, calling the move “shameful” and “corrupt.”
The company’s official X account shared a statement from CEO David Burritt, who accused the president of political payback and said the decision harms the company’s future, its workers and national security.
Burritt also criticized Biden for not meeting with the company to understand the facts and accused him of insulting Japan, a vital economic and national security ally.
Statement from David B. Burritt, President and CEO, on Today’s Order by President Biden.https://t.co/85iuRNiCAM pic.twitter.com/h6rbOgiitW
— U. S. Steel (@U_S_Steel) January 3, 2025
In a joint statement, U.S. Steel and Nippon Steel expressed their dismay, calling the decision a “clear violation of due process and the law governing CFIUS.” They vowed to take all appropriate action to protect their legal rights.
Earlier, President Biden issued a statement announcing his decision to block the deal and highlighting the importance of a strong, domestically owned and operated steel industry for national security and resilient supply chains. He pointed out the challenges faced by US steel companies due to unfair trade practices, such as foreign companies dumping steel at artificially low prices. To address this, Biden said he took decisive action, including tripling tariffs on steel imports from China. Biden added that since taking office, his administration’s record investments in manufacturing have led to the opening of over 100 new steel and iron mills, making the US steel industry the strongest it has been in years.
Biden stressed the need for major US companies to continue leading the fight for national interests. He explained that the acquisition would place a significant portion of US steelmaking capacity under foreign control, posing risks to national security and critical supply chains.
“It is my solemn responsibility as President to ensure that America has a strong domestically owned and operated steel industry,” Biden declared.
The president reaffirmed his commitment to defending US national security and ensuring that American companies play a central role in critical sectors.
“I will never hesitate to act to protect the security of this nation and its infrastructure as well as the resilience of its supply chains,” the president concluded.
In 2023, U.S. Steel rejected a $7.3 billion takeover bid from rival Cleveland-Cliffs. Since there were speculations on the internet at the time that tech titan Elon Musk might bid for U.S. Steel, we reached out to the Tesla and SpaceX owner on his social media platform, X, for his comments on Biden blocking the deal, but did not immediately receive a reply.
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— US and Global News (@USandGlobalNews) January 4, 2025
Featured photo shows U.S. Steel employees working at the Gary Works pig iron caster. Image via the media section of U.S. Steel’s website.
