March 14, 2024 - President Joe Biden on Thursday came out with his strongest statement yet against the $14.9 billion acquisition of United States Steel Corp. by Nippon Steel Corp., saying the Pittsburgh-based manufacturer needs to remain domestically owned and operated.

"U.S. Steel has been an iconic American steel company for more than a century, and it is vital for it to remain an American steel company that is domestically owned and operated," Biden said.

Biden's statement also name-checked one of the biggest opponents of the deal announced Dec. 18, the United Steelworkers. The Pittsburgh-based union represents about 10,000 U.S. Steel employees, including about 3,500 at the Mon Valley Works complex.

"It is important that we maintain strong American steel companies powered by American steel workers," Biden said. "I told our steelworkers I have their backs, and I meant it."

What that means in practice isn't clear. The Biden administration has promised intense review of the deal, which will be investigated by the Committee for Foreign Investment in the United States to determine whether there is any national security or supply chain implications. U.S. Steel and Nippon Steel have repeatedly said there isn't.

Lawmakers on both sides of the aisle have expressed skepticism, and it's likely to continue as a campaign issue during the presidential election year. Former President Donald Trump, the presumptive GOP nominee, has said he would block the deal. United Steelworkers have been lobbying among legislators to get the deal blocked, and negotiations between Nippon Steel and the union haven't led to a deal.

Biden's short statement had been expected since Wednesday, when media reports said he would put out a statement raising concern about the sale of U.S. Steel (NYSE: X). While the statement didn't come Wednesday, it had a big impact on the Pittsburgh manufacturer's stock: It declined 12% on Wednesday and opened at $39.18 a share Thursday, well below the $55 a share offered by Nippon Steel.

U.S. Steel shares dropped 2% in early trading Thursday.

U.S. Steel, Nippon Steel and United Steelworkers didn't immediately comment, but Nippon Steel and U.S. Steel issued a joint statement Wednesday, noting that, "We welcome the administration’s scrutiny of the transaction, as an objective and comprehensive review of this transaction will demonstrate that it strengthens U.S. jobs, competition, and economic and national security. The partnership between Nippon Steel and U.S. Steel reflects the close alliance between Japan and the United States, and we are confident that our partnership will create shared success for American jobs and American supply chains, while enhancing the competitiveness of the U.S. economy and forging resilience against threats from China."