Nippon Steel and US Steel have filed a lawsuit against the US government, alleging political interference in President Joe Biden’s decision to block Nippon Steel’s $14.9 billion takeover of US Steel. The companies claim Biden “ignored the rule of law” to curry favor with trade unions and advance his political agenda.

The lawsuit comes after Biden rejected the deal on Friday, citing national security concerns and the need for a strong, domestically-owned steel industry to support critical supply chains, including those for the automotive and defense sectors. Biden argued that allowing the acquisition would undermine US interests despite its potential to bolster Nippon Steel’s competitiveness against China’s steel dominance, which accounts for 60% of global production.

Political Context and Allegations

The proposed takeover, first announced in December 2023, had been in limbo for months. Biden’s decision to block the deal aligns with a campaign promise to protect domestic industries, particularly in Pennsylvania, a key swing state where US Steel is headquartered.

Nippon Steel and US Steel have requested a court-ordered review of the purchase, accusing the Committee on Foreign Investment in the US (CFIUS) of failing to conduct a “good faith, national security-focused regulatory review.” The companies also filed lawsuits against United Steelworkers President David McCall and Cleveland-Cliffs CEO Lourenco Goncalves, alleging “illegal and coordinated actions” to obstruct the deal.

McCall, who supported a $7.3 billion acquisition bid from Cleveland-Cliffs in mid-2023, defended Biden’s decision, stating it safeguarded national security and protected the domestic steel industry.

Japanese Concerns

The move has drawn criticism from Japan. Prime Minister Shigeru Ishiba expressed concerns about the decision’s potential impact on trade relations between the two G7 allies. “We must insist on an explanation as to why there are security concerns; otherwise, there will be no progress in future discussions,” Ishiba said on Monday.

Nippon Steel has reiterated its commitment to investing $2.7 billion in US Steel and emphasized that the acquisition would strengthen the US steel industry, particularly against competition from China.

Future Uncertainty

The lawsuit’s outcome could hinge on the next administration, but prospects remain uncertain. President-elect Donald Trump has also vowed to block the deal, arguing it would undervalue US Steel amid plans for sweeping tariffs on foreign imports.

“Why sell US Steel now when tariffs will make it a much more profitable and valuable company?” Trump wrote on Truth Social, referencing his plans to reintroduce protectionist measures similar to those from his first term.

Economic analyses of Trump’s 2018 tariffs indicate mixed outcomes: modest job gains at steel manufacturers but job losses in other sectors affected by higher steel costs.

The legal battle underscores the tensions between economic nationalism and global trade relations, leaving the fate of the acquisition—and its broader implications for US-Japan ties—in limbo.

A key indicator of household material welfare, Actual Individual Consumption (AIC) per capita, reveals significant variations across Europe. Expressed in Purchasing Power Standards (PPS), AIC measures all goods and services used by households, whether purchased directly or provided by the government or nonprofit organizations. As a result, it offers valuable insight into living standards across the continent.

In 2023, Luxembourg ranked at the top of the list, with AIC per capita 36% above the EU average, at 136% of the EU’s benchmark. In contrast, Bulgaria and Hungary recorded some of the lowest material welfare levels in the European Union, with AIC per capita at just 70% of the EU average. The overall EU average, which encompasses 27 member states, is set at 100.

Nine EU countries recorded AIC levels above the EU average. In addition to Luxembourg, these countries include Germany (119%), the Netherlands (119%), Austria (114%), Belgium (113%), Denmark (108%), France (106%), Sweden (106%), and Finland (105%). Among the EU’s largest economies, Germany and the Netherlands performed the best, followed by France, where welfare was 6% above the EU average. Meanwhile, Italy’s material welfare matched the EU average, and Spain, at 91%, ranked the lowest among the “Big Four.”

On the opposite end of the spectrum, Central and Eastern European countries, along with several EU candidate nations, generally reported lower AIC per capita. Latvia, Estonia, Croatia, and Slovakia follow Hungary and Bulgaria in showing more than 20% lower material welfare than the EU average.

Outside the EU, the European Free Trade Association (EFTA) countries reported higher material welfare levels than the EU. Norway and Switzerland exceeded the EU average, with Norway at 24% above and Switzerland 16% higher. In contrast, all six EU candidate countries fell below the EU average, with Turkey, at 84%, performing better than nine EU countries, including Poland (83%) and Greece (80%).

While Nordic and Western European nations consistently show higher AIC per capita, reflecting better material welfare, Central and Eastern Europe, along with EU candidate countries, exhibit lower AIC figures. This disparity highlights notable regional differences in living standards across Europe.

Over the past three years, several countries experienced shifts in material welfare. Denmark saw the most significant decline, dropping from 120% of the EU average in 2020 to 108% in 2023. Meanwhile, Ireland, Bulgaria, and Spain reported significant increases in AIC per capita, with Turkey recording the most substantial rise among EU candidates, moving from 64% to 84%.

Eurostat explains that AIC is a comprehensive measure of household material well-being, accounting for all household expenditures, including those for food, clothing, housing, and healthcare. This indicator offers a more equitable way to compare living standards across different regions and countries, adjusting for variations in price levels.