US rejection of Nippon Steel’s bid rankles its key ally Japan
US President Joe Biden’s decision to reject a bid by Nippon Steel to acquire US Steel on national security grounds hasn’t gone down well with the nation’s closest ally in Asia.
Many in Japan see the decision as a betrayal by Washington after decades of US pressure to lift barriers on investment and trade. The timing doesn’t help, with Japanese businesses already bracing for damaging tariff hikes once President-elect Donald Trump takes office. Japanese PM Shigeru Ishiba was blunt in warning that spoiling the deal might hurt Japanese investment in the US.
US Secretary of State Anthony Blinken sought to smooth ruffled feathers in a visit to Tokyo on Tuesday, saying Japan and the US were mutually the largest investors in each other’s economies.
Nippon Steel Chief Executive Eiji Hashimoto said the firm was standing firm on its proposed $15 billion friendly acquisition. Nippon Steel and US Steel have even filed a federal lawsuit challenging the Biden administration’s decision. But the assertion that the deal could threaten US national security has stung.
“It must be clearly explained why national security was cited as an issue. Otherwise, future discussions on the matter will come to naught,” Ishiba had said on Monday.
