In a significant policy reversal, President Donald Trump has called for a fresh national security evaluation of the proposed $14.9 billion Nippon Steel acquisition of U.S. Steel, after President Biden’s earlier rejection of the deal. The White House announced Monday that Trump has instructed the Committee on Foreign Investment in the United States to conduct a 45-day review, examining whether proposed measures by both companies adequately address national security concerns.
Trump orders new review of U.S. Steel acquisition by Japan's Nippon #Steel https://t.co/DFQu1Pm8Nx
— Karun Mittal💎 (@karun_f7) April 7, 2025
The announcement triggered an immediate market response, with U.S. Steel’s shares experiencing a dramatic 16% surge, closing at $44.49. This development marks a notable shift from Trump’s previous opposition to the deal. His stance appeared to soften during a February meeting with Japanese Prime Minister Shigeru Ishiba, where he suggested an alternative approach involving Nippon’s investment in U.S. Steel without complete ownership.
The Pittsburgh-based U.S. Steel, once a powerhouse of American industry, has weathered significant challenges in recent decades. By mid-2023, having lost its position as a top-two domestic steelmaker, the company sought potential buyers. Last December, Nippon Steel emerged as a buyer, offering $14 billion for the acquisition.
President Donald Trump said that Japan-based Nippon Steel will drop its bid to purchase U.S. Steel, and instead will invest in the company.
“They’ve agreed to invest heavily in U.S. Steel as opposed to own it." pic.twitter.com/mev6ay8Lop
— CBS News (@CBSNews) February 7, 2025
The Japanese company’s proposal included substantial additional funding for facility modernization. The deal faced immediate resistance from the United Steelworkers union, representing approximately 11,000 of U.S. Steel’s 14,000 American workers. Union leaders expressed skepticism about Nippon’s commitment to maintaining unionized operations. Biden’s administration initially blocked the transaction in January, citing risks to crucial U.S. supply chains under foreign ownership.
Trump’s latest directive neither explicitly supports nor opposes the deal but indicates that further examination is necessary to determine if security concerns could be addressed through additional stipulations or deal modifications.
