Japanese companies needing to grow have sought out American deals. Experts say that will not change even after Biden’s rejection of Nippon Steel’s takeover attempt.

President Joe Biden's decision to block Nippon Steel's acquisition of U.S. Steel will go down as one of the worst of his presidency, and will tarnish the legacy of a man who set out to strengthen American relations with other nations and to be the most pro-worker president in modern American history.

Biden cites need to ‘level playing field’ in long anticipated blocking of $14.6bn sale likely to roil ties with Tokyo.

The suit, filed in the U.S. Court of Appeals for the District of Columbia, alleges that it was a political decision and violated the companies’ due process.

President Joe Biden has rejected the nearly $15 billion proposed deal for Nippon Steel of Japan to purchase Pittsburgh-based U.S. Steel.

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

Nippon Steel and U.S. Steel are filing a federal lawsuit challenging the Biden administration’s decision to block a proposed nearly $15 billion deal for Nippon to acquire Pittsburgh-based U.S. Steel.

President Joe Biden on Friday announced a decision to block the $14 billion acquisition of U.S. Steel by Japan-based Nippon Steel, saying domestically produced steel is essential to U.S. national security. "Without domestic steel production and domestic steel workers, our nation is less strong and less secure," Biden said in a statement.

WASHINGTON/TOKYO (Reuters) -U.S. President Joe Biden blocked Nippon Steel's proposed $14.9 billion purchase of U.S. Steel on Friday, citing national security concerns, dealing a potentially fatal blow to the contentious plan after a year of review.

"U.S. Steel will remain a proud American company — one that's American-owned, American-operated, by American union steelworkers — the best in the world," President Biden said in a statement.

U.S. Steel employs thousands of workers on Minnesota's Iron Range at Minntac in Mountain Iron and Keetac in Keewatin.

Japan-based Nippon Steel has offered to give the U.S. government veto power over any potential reduction in steel output by U.S. Steel if the federal government approves a proposed merger.