President Joe Biden has blocked Japan’s Nippon Steel from acquiring US Steel in a $15 billion deal, citing national security concerns. The decision has sparked backlash from both companies and raised questions about the future of US-Japan economic relations.

In a statement on Friday, Biden emphasized the importance of maintaining US control over key industries. “We need major US companies representing the major share of US steelmaking capacity to keep leading the fight on behalf of America’s national interests,” he said.

The move aligns with a campaign promise Biden made to prioritize domestic industry, but it has drawn criticism from Japan. A Japanese government source told Euronews that Nippon Steel’s acquisition aimed to combine advanced technologies from both countries, bolstering competitiveness while preserving US steel production capacity and jobs.

The source added that the decision could undermine the growing trend of Japanese investment in the United States and expressed “strong concerns” about its impact on economic ties. “It is regrettable that this decision was made due to national security concerns,” the source said, urging the US to work with its partners to address such issues.

Corporate and Political Backlash

Nippon Steel and US Steel condemned the decision in a joint statement, accusing Biden of manipulating the process to serve political ends. “This represents a clear violation of due process and the law,” the companies said, adding that they are exploring legal action to protect their interests.

The statement dismissed Biden’s justification, claiming there was no credible evidence of national security risks. The companies warned that the decision “sends a chilling message” to allied nations considering significant investments in the US.

The controversy follows the Committee on Foreign Investment in the United States (CFIUS) failing to reach consensus on the deal last month. CFIUS submitted its report to Biden, who had 15 days to decide.

Impact on US-Japan Relations

The decision comes just weeks before Biden leaves office and may strain ties with Japan, a key US ally in Asia and its largest foreign holder of US debt. Critics argue that the move undermines trust in economic collaboration between the two nations.

The rejection has also drawn criticism from conservative lawmakers and business groups like the US Chamber of Commerce, which had supported the deal. Nippon Steel had garnered support from some Steelworkers union members and local leaders near its US operations.

Nippon Steel, the world’s fourth-largest steelmaker, sought the acquisition to enhance its global standing. US Steel, ranked 24th in 2023 by the World Steel Association, would have benefited from the partnership’s technological and operational synergies.

The fallout from Biden’s decision could have lasting implications for foreign investment and US industrial policy.

A man intentionally drove his pickup truck into a crowd on Bourbon Street early Sunday morning, killing at least ten people and injuring 35 others, according to New Orleans police. The attacker then opened fire, injuring two police officers. The incident, which took place around 03:15 local time (08:15 GMT), has left the city in shock.

Police Chief Anne Kirkpatrick described the attack as deliberate, saying the assailant drove “very fast” along Bourbon Street, aiming to “run as many people as he could” before crashing through barriers. “The man was hell-bent on creating the carnage and damage that he did,” she stated. Authorities have not released details on the attacker’s condition or identity.

Witnesses described scenes of chaos as the attack unfolded. One witness, who was in the area at the time, told the BBC that they “walked past dead and injured bodies all over the street” in the aftermath. A reporter from CBS saw several injured people lying on the ground at the intersection of Bourbon and Canal streets. A video verified by BBC showed people scrambling as gunshots were heard, with one person lying motionless on the ground.

Whit Davis, a visitor from Shreveport, Louisiana, recalled being in a bar nearby when the attack began. He said that while he didn’t hear the crash or the gunshots due to loud music, panic spread quickly as people “started running and getting under tables like it was an active shooter drill.” Davis was later shocked to witness the aftermath when police allowed him to leave the bar.

In a separate account, Jim and Nicole Mowrer, visiting from Iowa, described seeing a white truck crash through a barricade at high speed, followed by gunfire. They attempted to assist the wounded but realized that the victims had already died. The Mowrers noted that the victims appeared to have been struck by the truck, not shot.

The FBI is leading the investigation, with Special Agent Althea Duncan confirming that an improvised explosive device (IED) was found at the scene. Authorities are working to determine if the device was viable.

Initial reports indicate that most of the victims were local residents. Louisiana Governor Jeff Landry expressed his sorrow, saying he was “praying for all the victims and first responders on scene.” He called the act of violence “horrific” in a social media post.

The investigation into the attack is ongoing, with authorities working to understand the motive behind the incident.