U.S. President Donald Trump has opposed Nippon Steel’s [1] $14 billion bid to acquire U.S. Steel Corp, stating he does not want the American steel producer to be sold to Japan. His remarks have added uncertainty to the deal, which has already faced significant political and legal challenges.
Trump’s comments appear to contradict recent actions by his administration. Earlier this week, he directed a national security panel to reassess Nippon Steel’s all-cash offer, raising hopes that the deal might receive approval. However, following his latest statement, U.S. Steel’s shares experienced a sharp decline, dropping as much as 14% in after-hours trading before recovering slightly. The stock remains well below Nippon Steel’s offer price of $55 per share.
“We don’t want to see it go to Japan,” Trump said, adding, “We love Japan, but we don’t want it to go to Japan or any other place.”
Neither U.S. Steel nor Nippon Steel has commented on the matter, and White House officials have provided no clarification on whether Trump’s remarks conflict with the administration’s earlier actions.
The deal, announced in December 2023, has faced opposition from both sides of the political spectrum, particularly during the lead-up to the November 2024 presidential election. Former President Joe Biden had blocked the merger in January on national security grounds, prompting the companies to sue the Committee on Foreign Investment in the United States (CFIUS). They alleged that Biden’s decision was biased and violated their right to a fair review.
The Trump administration has since filed motions to extend deadlines in the lawsuit, aiming to allow more time for merger discussions. On Monday, both the government and the companies requested an appeals court to pause litigation until June 5, citing the potential for CFIUS to resolve the dispute.
As the situation unfolds, the fate of Nippon Steel’s bid for U.S. Steel remains uncertain, with political, legal, and economic factors continuing to shape the narrative.
Sources:
[1] Trump says he does not want to see US Steel go to Japan https://www.reuters.com/markets/deals/trump-says-he-does-not-want-see-us-steel-go-japan-2025-04-09/