Biden kills U.S. Steel deal; what Trump said and what it means for Pennsylvania

President Joe Biden’s decision to block Nippon Steel’s bid to buy U.S. Steel could have significant implications for Pennsylvania and the steel industry.

President-elect Donald Trump had already said he would kill the deal when he takes office later this month to keep a foreign firm from taking over the Pittsburgh-based business.

U.S. Steel employs thousands across its plants and offices in Pennsylvania and the state has about 10% of the nation’s steelworkers.

For them, Biden’s intervention could mean short-term job stability, as the administration emphasizes keeping the company under American ownership. 

But, it’s not a fix for U.S. Steel’s problems; the company has said it needs financial resources to upgrade plants and keep pace with demand for steel around the world.

Biden on Friday issued the order blocking Nippon Steel Corp.’s proposed $14.9 billion purchase of U.S. Steel, citing his presidential authority under the Defense Production Act of 1950 and calling the steel industry “critical for resilient supply chains.”

Nippon and U.S. Steel, however, took exception to the order.

In a joint statement, U.S. Steel and Nippon Steel said it was “dismayed” by Biden’s decision, calling it “a clear violation of due process and the law governing CFIUS.” 

The companies said blocking the sale will deny billions of dollars in investments planned in the U.S. and vowed to take “all appropriate action to protect our legal rights.”

(This story was updated to add new information.)