Joe Biden Gives Donald Trump Gift Before Inauguration

President Joe Biden is expected to announce on Friday that he will block the contentious takeover of U.S. Steel by Japan’s Nippon Steel, delivering a political gift to Donald Trump less than three weeks before his inauguration. The news was first reported by the Washington Post on Friday. Newsweek contacted the White House and Trump’s transition team for comment by email outside of standard working hours on Friday morning. Why It Matters The potential takeover of U.S. Steel by Nippon Steel was one of the most disputed issues during the 2024 presidential race. It became so contentious, in fact, that the Biden administration agreed to grant a request by the Japanese company to resubmit its filing with the Committee on Foreign Investment in the U.S. (CFIUS) in September to make sure the process wasn’t being politicized. In December the agency concluded that there was a risk that the takeover of the iconic American company could pose a national security threat by potentially weakening the country’s industry and shrinking its steel production. Ultimately, blocking such a large foreign investor as Nippon Steel is a political victory for Trump and his “America first” philosophy. Left, U.S. President Joe Biden is pictured in the State Dining Room of the White House in Washington, D.C., on January 2, 2025. Right, President-elect Donald Trump speaks during Turning Point USA’s AmericaFest in Phoenix,… Left, U.S. President Joe Biden is pictured in the State Dining Room of the White House in Washington, D.C., on January 2, 2025. Right, President-elect Donald Trump speaks during Turning Point USA’s AmericaFest in Phoenix, Arizona, on December 22, 2024. Biden is set to announce on Friday that he’ll block the takeover of U.S. Steel by Japan’s Nippon Steel—something Trump had promised to do once in office. Getty Images What To Know While both Biden and his vice president Kamala Harris had spoken out against the takeover of U.S. Steel during their respective 2024 presidential campaigns, Trump was by far the loudest voice opposing the $14.9 billion deal. “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,” Trump wrote in a post on his social media platform Truth Social in early December. “As President, I will block this deal from happening. Buyer Beware!!!” Trump said he would ensure U.S. Steel remains strong in the future through “tax incentives and tariffs.” Nippon Steel responded to Trump’s comment by saying that it would invest $2.7 billion into the American company’s unionized facilities, union jobs and technological advancement. “Nippon Steel is determined to protect and grow U.S. Steel in a manner that reinforces American industry, domestic supply chain resiliency, and U.S. national security,” it said in a statement reported by Reuters. Nippon Steel was harboring hopes that it could close a deal before Trump’s inauguration on January 20—despite the Biden administration’s concerns about the takeover and the powerful United Steelworkers union’s opposition to it. A majority of U.S. Steel’s shareholders supported the deal, believing it would preserve the steel industry in Pennsylvania at a time when the finances of the iconic company, founded in 1901, have become precarious. After the CFIUS gave Biden an evaluation of the deal it referred the decision to approve or block it to the president. The CFIUS, according to the Washington Post, told Biden it was concerned over the possibility that Nippon Steel could one day cut production in the U.S. and focus on its own facilities. The Japanese company tried to assuage these fears, suggesting on Tuesday that the U.S. government could veto any reductions to the company’s steel production. But this failed to convince the reviewing agency and the Biden administration. What People Are Saying The CFIUS wrote in its evaluation of the deal, according to the Washington Post: “Potential reduced output by U.S. Steel could lead to supply shortages and delays that could affect industries critical to national security.” United Steelworkers said in a statement in December: “The proposed sale is bad for workers, our communities and the domestic industry—as well as our national security, critical infrastructure and domestic supply chains.” Donald Trump said on Truth Social in December: “Through a series of Tax Incentives and Tariffs, we will make U.S. Steel Strong and Great Again.” Joe Biden said in March 2024: “It is vital for [U.S. Steel] to remain an American steel company that is domestically owned and operated.” What’s Next Blocking the proposed acquisition of U.S. Steel from Nippon Steel could have significant consequences for the American economy and the relationship with its ally Japan—as well as for the Pennsylvania-based company, whose future remains uncertain. The move, which is very much in line with Trump’s “America first” agenda, signals the beginning of a more protectionist approach to international investment and trade.