BBC News contacted Nippon Steel and US Steel for comment.
Nippon Steel previously denied it planned to cut production or cut jobs, while US Steel warned it may have to close plants without the investment that would come with a new owner.
This concern was echoed by some workers and local politicians.
Other business groups have said they fear scrapping the deal will chill the climate for international investment in the United States.
But Biden has long expressed opposition to the deal. The deal was also criticized by President-elect Donald Trump and incoming Vice President J.D. Vance.
A US government panel tasked with reviewing the deal for national security risks failed to reach a consensus by the end of December, leaving the decision to Biden, who had 15 days to act.
In a statement Friday, he said preserving American ownership is important to maintaining the strength of the U.S. steel industry and its supply chains.
“As I’ve said many times, steelmaking — and the steelmakers who make it — are the foundation of our nation,” he said.
“That’s because steel runs our country: our infrastructure, our automotive industry and our defense industrial base. Without domestic steel production and domestic steel workers, our country is less strong and less safe.”
Nippon Steel and US Steel have previously suggested they may take legal action against the government if the deal does not go through.
