The possibility of President Biden blocking a merger between Nippon Steel and U.S. Steel on national security grounds has caused tension in Tokyo, with some officials feeling that it portrays Japan as a threat. Japanese officials have privately expressed concerns to U.S. officials about the reported intention to stop the merger. This political storm risks straining relations between the two countries as they aim to counterbalance China's influence. The U.S. has been pressuring Japan to impose restrictions on its firms' ability to sell advanced chip-making tools to China. The potential scuttling of the merger could impact trust between the U.S. and Japan, leading to lasting future problems. The U.S. ambassador to Japan emphasized the strength of the U.S.-Japan relationship beyond commercial transactions. The United Steelworkers union in the U.S. has opposed the acquisition, citing national security concerns, while some in Japan contest those claims. The Committee on Foreign Investment in the United States is scrutinizing the bid over potential risks, but has not yet made a recommendation. The potential demise of the merger could send negative signals about the U.S.'s openness to foreign investment.