Japanese Prime Minister Shigeru Ishiba has expressed “strong concerns” to U.S. President Joe Biden regarding his administration’s decision to halt Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel, citing national security concerns. Ishiba emphasized that apprehensions are not limited to Japan but are also being voiced within the U.S. business community.
“I urged President Biden to address these growing concerns and dispel any negative sentiments,” Ishiba stated during a press briefing following a trilateral call with Biden and Philippines President Ferdinand Marcos. Both Nippon Steel and U.S. Steel have initiated legal actions, accusing the U.S. government of “unlawful interference” in the deal, which was announced in 2023 but faced political resistance due to its potential economic impact on Pennsylvania, a key swing state.
Japan’s Investments and Strategic Alliance with the U.S.
Japan has been a major investor in the United States, contributing $800 billion in 2023 alone, accounting for 14.3% of all foreign investments in the country. U.S. Steel’s acquisition was framed by Nippon Steel as a means to revitalize the American company while maintaining jobs. However, critics argued that the deal could result in layoffs despite assurances to the contrary.
Japan and the U.S. share a robust strategic alliance, with approximately 54,000 U.S. military personnel stationed in Japan. This partnership is critical as Washington seeks to counterbalance China’s growing influence in the South China Sea.
Extending Deadlines and Strengthening Ties
The deadline for the deal’s unwinding has been extended to June 18, 2025, as announced by both steel companies. Japan’s Foreign Minister Takeshi Iwaya highlighted the importance of maintaining strong bilateral ties despite the current dispute, stating, “It is essential to address this issue without undermining the broader Japan-U.S. alliance.”
Iwaya, set to attend Donald Trump’s inauguration as the next U.S. president on January 20, also plans to discuss the matter with Marco Rubio, Trump’s incoming Secretary of State, and prepare for a potential meeting between Ishiba and Trump by mid-February.
Collaborative Progress in Regional Security
In recent years, Washington has strengthened relations with Japan, South Korea, and the Philippines to counter China’s influence. During the Monday call, Biden, Ishiba, and Marcos reaffirmed their commitment to enhancing cooperation in areas such as economic growth, technological innovation, clean energy, and regional security.
Biden also praised the “historic progress” made in maritime security and economic collaboration among the three nations. With bilateral and trilateral ties deepening, the leaders aim to navigate challenges and uphold regional stability.
