By blocking a Japanese company’s takeover of U.S. Steel, President Joe Biden said he was protecting good jobs in the American heartland. He may be putting them at risk instead.

President Joe Biden announced he was blocking the purchase of U.S. Steel by Japanese steelmaker Nippon Steel on dubious economic and national security grounds.

Senior administration officials had reservations about calling Nippon Steel’s takeover proposal a “national security risk.”

The president said he was moving to protect national security in deciding the fate of the iconic Pennsylvania-based company, which became a contentious political issue in an election year.

U.S. Steel’s president and CEO declared President Biden’s decision to block the company from being acquired by the Japanese corporation Nippon Steel “shameful” and “corrupt” in a Friday afternoon

President Joe Biden said Friday he is blocking a $14.3 billion acquisition of US Steel by Japan’s Nippon Steel, marking a significant use of executive authority in the closing days of his administration.

President Joe Biden officially announced on Friday he has blocked Nippon Steel's $14.1 billion purchase of U.S. Steel, setting up a likely federal court battle.

The companies condemned the president's decision and hinted at taking legal action, while U.S. Steel's CEO accused Biden of "political corruption."

U.S. Steel leaders had warned that without an infusion of capital from Nippon Steel, it would be forced to curtail its legacy blast furnace investments and shift to cheaper nonunion electric arc furnaces. Additionally, executives said U.S. Steel could move its headquarters out of Pittsburgh.

By David Shepardson, Tim Kelly and Katya Golubkova WASHINGTON/TOKYO (Reuters) -U.S. President Joe Biden officially blocked Nippon Steel's proposed $14.9 billion purchase of U.S. Steel on Friday, dealing a probably fatal blow to the contentious merger plan after a year of review.