White House Faces Blunder in US Steel Controversy

On Friday, President Joe Biden signed an executive order halting the sale of U.S. Steel to Japan’s Nippon Steel, citing concerns over national security and the integrity of the nation’s supply chains.

Initially, the order mistakenly bore the title of a previous executive order issued in May 2024, which blocked a Chinese-owned company from purchasing land near a strategic missile base in Cheyenne, Wyoming.

The White House quickly corrected the error, updating the title to accurately reflect the U.S. Steel acquisition. Alongside this, the administration released a statement from President Biden clarifying his rationale for the decision.

“As I have said many times, steel production—and the steel workers who produce it—are the backbone of our nation. A strong domestically owned and operated steel industry represents an essential national security priority and is critical for resilient supply chains,” Biden explained.

“That is because steel powers our country: our infrastructure, our auto industry, and our defense industrial base. Without domestic steel production and domestic steel workers, our nation is less strong and less secure,” he added.

The president cited his constitutional role as commander in chief and the 1950 Defense Production Act as the legal grounds for his decision to block the deal.

Trump Joins Opposition to Steel Sale

President-elect Donald Trump also voiced opposition to the sale. In a Truth Social post from early December, he declared:
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan. Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again, and it will happen FAST!

“As President, I will block this deal from happening. Buyer Beware!!!”

Union and Industry Reactions

The United Steelworkers union expressed strong opposition to the sale, fearing that Nippon Steel would shut down older facilities in Pennsylvania and Indiana, shifting production to U.S. Steel’s newer mini-mill in Texas. Such a move, they argued, would result in significant union job losses.

Meanwhile, U.S. Steel and Nippon Steel issued a joint statement promising to challenge the president’s executive order in court.

“Nippon Steel and U. S. Steel are confident that our transaction would revitalize communities that rely on American steel, including in Pennsylvania and Indiana, provide job security for American steelworkers, enhance the American steel supply chain, help America’s domestic steel industry compete more effectively with China and bolster national security,” the companies stated.

They emphasized that Nippon Steel is uniquely positioned to invest heavily in U.S. Steel, pledging over $1 billion to Mon Valley Works in Pennsylvania, $300 million to Gary Works in Indiana, and a total of $2.7 billion to strengthen the company. These investments, they argued, would ensure U.S. Steel’s enduring status as an iconic American enterprise while benefiting the steel industry and the communities it supports.