CPA applauds Biden Administration action to block Nippon Steel’s purchase of U.S. Steel

The Coalition for a Prosperous America (CPA) commends President Biden’s decisive action to block Nippon Steel’s $14.9 billion bid to acquire U.S. Steel. This decision reflects a necessary commitment to safeguarding America’s industrial base and national security against state-sponsored predators like Nippon Steel.

“Nippon Steel is a state-backed predator that has a rap sheet of bad behavior, including unlawful dumping, that has weakened U.S. Steel, America’s domestic steel industry, and our national security. Despite Nippon’s unenforceable promises, the company would have moved capacity and jobs offshore to its other overseas facilities after several years,” said Zach Mottl, Chairman of CPA. “Japan would not and does not allow foreign investors, including U.S. investors, to own critical industries there. We applaud President Biden for putting America’s workers, industries, and national security first by blocking this deal.”

The Biden administration’s order followed a December 23 report by the Committee on Foreign Investment in the United States (CFIUS), which found that the acquisition posed unacceptable risks to America’s national security. CFIUS warned that Nippon Steel could reduce U.S. steel output and harm critical industries. U.S. Steel executives, meanwhile, stood to personally profit tens of millions of dollars from this disastrous deal, putting their own financial interests above those of American workers and national interests.

Japan’s heavily subsidized steel industry has long sought to dominate global markets through predatory practices. Allowing this acquisition to proceed would have rewarded these tactics and set a dangerous precedent for other foreign buyers. A report released last year from Horizon Advisory detailed the longstanding relationship between Nippon Steel and the Chinese steel industry and the dangers it could pose to American national and economic security.

“This decision sends a powerful message: America will not be sold off to the highest foreign bidder,” Mottl added. “It’s a victory for U.S. workers, manufacturers, and everyone who believes in the importance of maintaining a strong, self-reliant industrial base. We urge policymakers to build on this decision by pursuing balanced trade, protecting the domestic market share of American producers and using the full array of industrial policy tools to rebuild American production.”