Cato Scholar Comments on Nippon Steel Block

Scott Lincicome

In a new blog post, Scott Lincicome, Vice President of General Economics and Trade Policy at the Cato Institute, critiques President Biden’s decision to block Nippon Steel’s acquisition of US Steel. While Biden cited national security risks, Lincicome emphasizes that the supporting evidence is lacking. The deal involved a $2.7 billion investment and had widespread backing, including “more than 98 percent of its shareholders” and experts who believed it would “bolster US national security and relations with one of our closest allies.”

Lincicome argues that the decision was politically motivated, stating, “Biden’s decision wasn’t about ‘national security’ at all.” He warns that this could harm US-Japan relations and the investment climate, asserting that “the politicization of the Nippon Steel deal and ‘national security’ has potential harms that go way beyond the two companies or even the industry at issue.”

To speak to Scott about this topic, please do not hesitate to reach out to us.