Trump Opposes Nippon Steel’s $14 Billion Bid for US Steel

US President Donald Trump expressed his opposition to the $14 billion bid by Nippon Steel for US Steel, stating that he does not want the American steel company to be acquired by a Japanese firm, Reuters reports.

Trump’s comments, made on Wednesday, suggested a shift in perspective regarding the ongoing deal, as his administration had earlier directed a national security panel to reassess Nippon Steel’s all-cash offer.

Trump remarked, “We don’t want to see it go to Japan,” while acknowledging the US relationship with Japan, stating, “We love Japan.” Despite his favorable stance toward Japan, Trump emphasized his preference for keeping US Steel within American ownership, indicating his concern over foreign control of significant US companies.

The timing of Trump’s comments raised questions, given that just days earlier, on Monday, the Trump administration had instructed a national security review panel to reconsider the offer from Nippon Steel, raising speculation that the deal might still be approved. Shares of US Steel fell by 12% in premarket trading, standing well below Nippon Steel’s proposed price of $55 per share.

The deal, first proposed in December 2023, has faced significant opposition, particularly from US political leaders. Outgoing President Joe Biden blocked the merger in January on national security grounds, arguing that the acquisition posed risks to critical infrastructure and supply chains. This decision was met with a lawsuit from both US Steel and Nippon Steel, who accused the US government of prejudicing the merger review process.

The situation has also drawn attention to the upcoming US presidential election, with both Trump and Biden having voiced strong opposition to the acquisition, likely due to its potential political ramifications in key battleground states, including Pennsylvania, where US Steel is headquartered.

While the legal battle continues, the Trump administration and the two companies have agreed to pause litigation until June 5 to allow time for a more thorough review of the deal by the Committee on Foreign Investment in the United States (CFIUS). The companies are hopeful that the new review process may provide clarity on the future of the proposed merger.