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President Joe Biden is expected to block a $15bn deal by Japan’s Nippon Steel to buy US Steel, ending months of frantic lobbying and delivering a setback to Washington’s relationship with its closest Asia-Pacific ally.

In one of his final actions in government, Biden — long opposed to the takeover — is expected to announce as soon as Friday his decision to kill the proposed acquisition of the iconic American steelmaker, according to two people familiar with the matter.

One of those people said the White House had yet to notify Nippon Steel about the decision.

The president’s expected move comes after an inter-agency investment screening review, known as the Committee on Foreign Investment in the US (Cfius), failed to reach consensus by a December 23 deadline on whether the acquisition posed a national security threat.

Two people close to the situation said Nippon Steel was likely to take legal action against the outgoing president’s ruling.

One person said such an action could, during the discovery process, reveal the extent to which the decision had been led by politics rather than national security concerns. The process would also expose the limitations of the Cfius process and its vulnerability to political interests.

Nippon Steel declined to comment.

President-elect Donald Trump had also threatened to quash the deal and vowed to protect the Pittsburgh-based company through a mix of tariffs and tax incentives.

The year-long saga’s conclusion marks the failure of an audacious gambit by the Japanese group that soon morphed into a sensitive political issue in an election year. It also represents a significant departure from the US’s long-standing open investment environment.

Biden’s decision risks undercutting four years of work to reassure allies such as Japan of their special relationship with the US amid strategic competition with China and a shift towards protectionism, support for trade unions and an “America first” sentiment in US politics.

US and Japanese government officials fear broader ramifications for investment and M&A by Japan and other partners in America and implications for the solidity of the US-Japan alliance.

Takahiro Mori, vice-president at Nippon Steel, spearheaded last-ditch efforts by the Japanese steelmaker to win over government officials and union members in Washington and Pennsylvania.

Those efforts included a new proposal this week that offered the government a veto over any reductions in steelmaking capacity at the majority of Nippon Steel’s plants in the US, adding to an array of other assurances on jobs and investment.

The gesture followed concerns from Cfius that US Steel could lower domestic steel production under Japanese ownership, affecting industries of national importance.

However, those moves were of little avail, even as some of Biden’s senior advisers tried to talk him out of obstructing the deal.

Its death marks a victory for Katherine Tai, the US trade representative, and David McCall, president of the United Steelworkers union, who were the deal’s two staunchest opponents.

STORY: :: Authorities report two dead, 20 injured as plane

crashes into a warehouse in Southern California

:: January 3, 2025

:: Michael Meacham, Deputy Chief, City of Fullerton

“The airplane departed from runway two four at Fullerton about 2 p.m. this afternoon, climbed straight ahead to about 900 feet. And a short time later, the pilot called for an immediate return to the airport. The tower controller then cleared the pilot to land on any runway. The airplane then appeared to make a 180 degree left turn and flew the left downwind for runway two four and then ultimately crashed about 1,000 feet short of runway two four, struck a furniture building and immediately caught fire. And so far, we have two confirmed fatalities, but we don’t have any any names or IDs.”

”We’ll obviously be looking at the wreckage tomorrow on scene within the factory, documenting as much as we possibly can, and we’ll be walking around trying to get video camera footage, talking to witnesses. We’ll be extracting the electronic data that’s on board and then from there will remove it. And we’ll do a far more forensic investigator in a remote facility.”

The aircraft, a single-engine Van’s RV-10, hit the warehouse at 2:15 pm local time (10:15 pm GMT), causing a fire and significant damage to the building. Elliot Simpson, an accident investigator with the National Transportation Safety Board (NTSB), provided details about the incident during a press briefing.

“The airplane involved was a kit built Van’s Aircraft RV-10, registration number N8757R, constructed in 2011. It’s a four-seat single-engine aluminum airplane, based out of Fullerton Airport,” Simpson explained. “The airplane departed from runway two four at Fullerton about 2 pm, climbed to about 900 feet, and a short time later, the pilot called for an immediate return to the airport.”

The airplane subsequently made a 180-degree left turn, flew the left downwind for runway two four, and crashed about 1,000 feet short of the runway, striking a furniture building and immediately catching fire. “We have two confirmed fatalities, but we don’t have any names or IDs. The coroner will be able to provide that at some point,” Simpson added.

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South Korean investigators were attempting to arrest President Yoon Suk Yeol as part of a probe into alleged treason and abuse of power after his failed attempt last month to impose martial law.

About 30 investigators from the Corruption Investigation Office for High-ranking Officials and 120 police officers entered Yoon’s residence in central Seoul early on Friday, state-run Yonhap News said.

Police officers were clashing with the president’s security officers, according to YTN News. Hundreds of Yoon’s supporters rallied outside his residence, shouting “impeachment invalid” and “protect Yoon”.

If arrested, Yoon will be the first incumbent South Korean president to be detained.

Yoon unleashed an acute political crisis in South Korea with his failed effort to impose martial law. He was impeached by parliament last month, but the move has to be approved by the country’s constitutional court.

The independent anti-corruption agency is expected to question Yoon over possible insurrection after he allegedly dispatched troops to the national assembly in an attempt to prevent lawmakers from rejecting his shortlived martial law decree.

Yoon’s lawyers said on Friday that the agency’s attempt to arrest the president was “illegal and invalid” and they would take a legal action against the move.

On Wednesday Yoon sent a letter to hundreds of his supporters rallying outside his residence. “The country is in jeopardy due to anti-state forces. I’ll fight until the end to protect the nation together with you,” he wrote.

Under South Korea’s constitution, the president is immune from criminal prosecution, except when facing allegations of rebellion or treason. Acting president Choi Sang-mok on Tuesday appointed two justices to the court, filling two of the vacancies at the nine-member constitutional court.

The court’s eight sitting justices will hold a second hearing on Friday on whether to remove Yoon from office. The court has until June to reach a verdict though this deadline could be extended. A minimum six votes are required to approve Yoon’s impeachment. If he is removed from office, a presidential election must be held within 60 days.

The political turmoil has weighed on the South Korean economy, which is facing higher US tariffs in Donald Trump’s second term in the White House. The government on Thursday revised down this year’s growth forecast to 1.8 per cent from 2.2 per cent and is considering drawing up an extra budget to boost sluggish domestic consumption.

Choi on Friday ordered officials to take measures to stabilise financial markets “swiftly and boldly” in case of heightened volatility. He said he would continue to meet high-ranking financial officials including Bank of Korea governor Rhee Chang-yong every week to monitor market conditions. Rhee on Thursday warned of growing downside risks for the Korean economy and said the bank would be “flexible” with the pace of rate cuts in the face of “unprecedented” political and economic uncertainties. 

South Korea’s stocks and currency were among the worst performers in Asia last year, in part because of the political chaos, with the Kospi stock index down nearly 10 per cent and the won trading near its lowest level since 2009. The country’s stock market opened slightly higher on Friday.