Economy Japan criticizes Biden's blockade of Nippon's takeover of US Steel
The Japanese government has criticized US President Joe Biden's no to the takeover of the US steel group US Steel by Japanese competitor Nippon Steel. Industry Minister Yoji Muto described the decision as "incomprehensible and regrettable".
04.01.2025, 06:45
SDA
"The Japanese government has no choice but to take this seriously," Muto told the AFP news agency.
White House spokeswoman Karine Jean-Pierre emphasized that Biden's blockade decision was not directed against Japan. The president had expanded ties with the country during his time in office. "We are in contact with Japan and have communicated our thoughts to them directly," said Jean-Pierre.
Biden had justified his blocking of the takeover with security concerns. "This takeover would bring one of America's largest steel producers under foreign control and pose a risk to our national security and our critical supply chains," he explained. "That is why I am taking action to block this deal."
Biden hands over the reins of office to Republican Donald Trump on January 20. One of the declared goals of his term in office was to give new impetus to the manufacturing industry in the USA. The right-wing populist Trump had already announced his intention to oppose the takeover.
Trade union warns of job losses
Parts of the deal between US and Nippon Steel also involved factories in Pennsylvania. The state was particularly important in the presidential election campaign and the future of the industry located there was one of the most important campaign issues. Biden had blamed unfair foreign trade practices for the decline of the US steel industry and defended protectionist measures as a means of protecting jobs.
In a joint statement, US Steel and Nippen Steel criticized themselves for making a "political decision" and announced that they would take "all appropriate measures" to protect their rights. The management of both companies had argued that the takeover was "by far the best way to ensure" that US Steel would continue to be successful in the future.
The Union of Metalworkers (USW) had opposed the takeover and warned of job losses. USW boss David McCall thanked Biden on Friday for "his lifelong commitment to American workers" and for his willingness to "take bold action to maintain a strong domestic steel industry".
