U.S. President Donald Trump has directed the Committee on Foreign Investment in the United States (CFIUS) to reexamine Nippon Steel‘s [1] bid to acquire U.S. Steel. This decision comes after the deal was previously blocked by former President Joe Biden on national security grounds.
The presidential memorandum calls for a detailed review to determine whether the acquisition poses any risks to national security. Trump emphasized the importance of ensuring that measures proposed by the involved parties are sufficient to mitigate potential threats. The committee has been given 45 days to submit its recommendations.
The announcement has sparked optimism among investors, with U.S. Steel’s shares surging by over 13%. Nippon Steel also expressed confidence, stating that the partnership would bolster both American economic and national security. The Japanese corporation had previously faced challenges when Biden’s administration blocked the deal, citing concerns over foreign control of a major U.S. steel producer.
The controversy surrounding the acquisition has been further fueled by legal battles. Nippon Steel and U.S. Steel filed lawsuits against CFIUS, alleging bias in the initial review process. They claimed that Biden’s opposition to the deal was politically motivated, aiming to secure support from the United Steelworkers union in Pennsylvania, a key swing state.
Trump’s decision to revisit the matter has reignited debates about the balance between economic growth and national security. While some view the move as a potential breakthrough for the merger, others remain cautious about the implications of foreign investment in critical industries.
Sources:
[1] Trump orders fresh review of Nippon Steel’s bid for US Steel https://www.reuters.com/markets/commodities/trump-orders-fresh-review-nippon-steels-bid-us-steel-statement-2025-04-07/