Biden’s objection to U.S. Steel’s takeover by Nippon shows politics colliding with national-security decisions

President Joe Biden came out forcefully against Nippon Steel’s planned acquisition of U.S. Steel on Thursday, stressing the importance of maintaining “strong American steel companies powered by American steel workers.”

Biden’s statement sent U.S. Steel shares X, 0.39% tumbling more than 6% as investors surmised that the deal — currently under review by the Committee on Foreign Investment in the United States, or CFIUS — is likely dead in the face of presidential opposition.

Federal law grants the president broad authority to block foreign purchases of domestic assets that are deemed to be contrary to American national-security interests, according to Greg Gonzalez, former counsel to the assistant attorney general for national security and a partner at the law firm Wilkinson Barker Knauer.

Under the law, however, the president is not intended to reach a final determination on whether to block a transaction until CFIUS comes to an impartial conclusion on the national-security implications. “It’s unusual to put out a statement before there’s been an official finding,” Gonzalez said.