President Biden blocked Nippon Steel's acquisition of U.S. Steel citing national security concerns, a rationale which has drawn criticism from the companies and other observers.

The market responded quickly; the stock price of U.S. Steel dropped 6.5% after the disclosure. Analysts speculate the choice would compel the business to rethink its approach, including a possible change from conventional blast furnace operations. The change might affect thousands of union employment.

By blocking a Japanese company’s takeover of U.S. Steel, President Joe Biden said he was protecting good jobs in the American heartland. He may be putting them at risk instead.

Nippon Steel, whose multibillion-dollar proposal to buy struggling US Steel was blocked by President Joe Biden last week, says it is considering taking legal action against the US government.

The company still needs investment badly, and it isn’t clear what game of opportunity and survival is being played at the top.

The president said he was moving to protect national security in deciding the fate of the iconic Pennsylvania-based company, which became a contentious political issue in an election year.

Joe Biden’s decision to block Nippon Steel’s acquisiton of U.S. Steel may have gone against the advice of top aides.

Japan's prime minister on Monday urged Washington to dispel concerns that a decision by Joe Biden to block Nippon Steel's takeover of US Steel could impact future investments.