Japan PM Tells Biden ‘Strong’ Concerns Over Steel Deal

AFP/APP

Tokyo: Japanese Prime Minister Shigeru Ishiba told US President Joe Biden that his blocking of Nippon Steel’s takeover of US Steel had raised “strong” concerns in both countries, local media reported Monday.

The comments came during a three-way call with the president of the Philippines, which, according to the White House, also touched on China’s “dangerous and unlawful” behavior in the region.

Citing national security concerns, Biden blocked Nippon Steel’s $14.9 billion acquisition of US Steel earlier this month, drawing criticism from Japan, where the United States has some 54,000 military personnel stationed.

“I said that strong voices of concern are being raised not just in Japan but also in the US business community, and I urged (Biden) to dispel these feelings,” Ishiba told reporters after the call.

Blocking a takeover by a Japanese firm is highly unusual, and both companies have launched legal action, accusing the outgoing US president of “illegal interference.” Nippon Steel had touted the acquisition as a lifeline for its struggling US rival, though opponents warned that the Japanese group would slash jobs despite its assurances to the contrary.

The takeover, announced in 2023, became a political flashpoint as it unfolded during the run-up to last year’s US presidential election. US Steel, based in Pennsylvania, a swing state, saw opposition from both Donald Trump and Kamala Harris.

In 2023, Japanese firms invested nearly $800 billion in the United States, more than any other country, accounting for 14.3% of the total, according to official US data. US firms are also the largest outside investors in Japan. Japan remains a close strategic ally of Washington, especially as the US aims to counter China’s growing influence in contested areas of the South China Sea.

Both steel companies announced Sunday that US authorities had extended the deadline for unwinding the acquisition until June 18.

Japan’s Foreign Minister Takeshi Iwaya, who will attend Trump’s inauguration as US president on January 20, stressed the importance of not undermining the “big picture” of bilateral ties.

Iwaya also indicated that while in Washington, he would seek talks with Marco Rubio, who is expected to be Trump’s Secretary of State, and lay the groundwork for a meeting between Ishiba and Trump, which government sources suggested could take place before mid-February.

During Trump’s first term, he and Japan’s then-Prime Minister Shinzo Abe enjoyed warm relations. In December, Trump met with Abe’s widow at Mar-a-Lago.