Nippon Steel, US Steel File Lawsuits Over Biden Decision

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Jan 06, 2025

Above: Nippon Steel Corporation in Tokyo on Jan. 6, 2025. Image copyright: KAZUHIRO NOGI/Contributor/AFP via Getty Imagesstory last updated Jan 06

The Facts

Nippon Steel and US Steel filed federal lawsuits Monday challenging Pres. Joe Biden's decision to block a $15B merger between the two companies, saying Biden's move violated due process and was politically motivated. In a separate lawsuit, the companies also accused steel-making rival Cleveland-Cliffs Inc. of anti-competitive and racketeering actions to block the deal.
This comes after Biden blocked the merger on Jan. 3, citing national security concerns about maintaining domestic steel production.

The Spin

Establishment-critical narrative

Blocking this deal makes the future of the steel industry in Pennsylvania uncertain, and would be against the best interests of US workers. Nippon Steel had promised, along with its significant investment, that it would not have any layoffs for 10 years — a commitment that workers at these American plants are unlikely to get from anywhere else. In addition to protecting union jobs through guaranteed employment, this investment would also strengthen American steel production by providing much-needed modernization to aging facilities. The Biden administration's decision to block this acquisition lacks a strong legal basis and is politically motivated.

Pro-establishment narrative

Maintaining American ownership of strategic industries like steel production is essential for national security and supply chain resilience. Allowing a foreign company like Nippon Steel to take control of critical domestic steel production would be a threat to American interests. This acquisition would have very likely undermined the domestic steel industry while bolstering the industry abroad — undercutting American trade and critical domestic infrastructure needs. There are other ways besides this deal to ensure the success of US Steel.