The plan for acquisition raised alarms among some political advisors who feared it could negatively impact US-Japan relations, but Biden ultimately prioritized the integrity of the domestic steel industry. In a statement released on Friday, he emphasized the critical role steel plays in national infrastructure and security, asserting that "without domestic steel production and domestic steel workers, our nation is less strong and less secure." Nippon Steel previously denied intentions of job cuts or reduced production, while US Steel warned of potential plant closures without the proposed investments from Nippon Steel.

The ruling follows a long-standing opposition from Biden and criticisms from former President Donald Trump, suggesting that rejecting overseas ownership aligns with an America-first industrial policy. Some experts foresee possible legal actions from Nippon Steel and US Steel as they navigate this unexpected roadblock. Political analysts argue that this decision reflects the Biden administration's commitment to strengthening domestic industries and its implications are likely to resonate within investment atmospheres and international trade negotiations going forward.