In a surprising move on Friday, the White House made a rare mistake in its latest executive order. The order aimed to block a $15 billion deal where Nippon Steel wanted to acquire U.S. Steel, but it seems the White House accidentally used the same language from a previous order, issued back in May.
So, what happened? Well, the order issued Friday repeated the exact wording from the May executive order about Chinese real estate. It started with the same phrase, “regarding the acquisition of certain real property of Cheyenne leads by MineOne cloud computing investment I L.P.,” which was also used in the title of the president’s May order.
This mix-up raised some eyebrows, but the reason behind blocking the deal is more important. President Biden’s decision to keep U.S. Steel in American hands was based on national security concerns. After a review in December, which didn’t reach a clear decision, Biden received a recommendation from national security experts. He wrote in a statement on Friday that blocking the sale is part of his larger mission to “defend U.S. national security.”
At the heart of the issue? The potential for America’s second-largest steel producer to fall under foreign control. Nippon Steel announced its plan to buy U.S. Steel for $14.9 billion in January 2024, arguing it would make both companies more competitive against China’s Baowu Steel Group.
But, Biden made it clear that U.S. steel companies must continue to lead the way in defending America’s national interests. He said the deal could jeopardize national security and disrupt critical supply chains.
In the president’s words: “We need major U.S. companies representing the major share of U.S. steelmaking capacity to keep leading the fight on behalf of America’s national interests.” That’s why he decided to block the deal.
While the Daily Caller reached out to the White House for more details, they didn’t hear back before the story went live.
In the end, it’s clear the White House wants to keep American steel in American hands—national security is the top priority.
