Steel Setback: Biden Jeopardises Investment, Ties With Japan

President Joe Bidens decision to reject the purchase of US Steel has angered Japan, one of Washingtons closest allies, whose companies are the largest foreign investors in the US.

Opponents worried that Nippon Steel would eliminate jobs despite claims to the contrary, while the Japanese company hailed the 14.9 billion transaction as a lifeline for its ailing US rival.

Given that US Steel is headquartered in Pennsylvania, a swing state, the 2023 deal was disclosed just before the presidential election and was opposed by both major contenders, Donald Trump and Kamala Harris.

The Committee on Foreign Investment in the United States CFIUS, a federal panel, was unable to agree and blamed Biden in the latter days of his presidency.

Following Trumps lead, Biden blamed the US steel industrys decline on national security and unjust global trade rules, pointing to China as the worlds largest manufacturer.