Trump Orders Fresh Review of Nippon Steel’s Bid to Acquire US Steel

Trump has directed a new national security review of the $14.9 billion acquisition halted by Biden, signaling a possible shift in the U.S. stance on the deal.

A portion of U.S. Steel's Edgar Thomson Works in Braddock, Pa., on April 28, 2024. AP Photo/Gene J. Puskar

President Donald Trump on April 7 ordered a new review of the proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, months after the deal was blocked by his predecessor over national security concerns.

In a presidential memorandum issued on April 7, Trump directed the Committee on Foreign Investment in the United States (CFIUS) to conduct a new review of the transaction. The memorandum instructs the committee to evaluate the deal’s potential national security risks and to provide the president with recommendations within 45 days.

The directive marks a shift from the Biden administration’s position. In early January, then-President Joe Biden blocked the acquisition, citing the need to maintain a domestically owned steel industry. Biden described steelmaking as a strategic sector vital to U.S. security and resilient supply chains.

“A strong domestically owned and operated steel industry represents an essential national security priority,” Biden said at the time.

Trump’s new order reopens the possibility of a path forward for Nippon Steel and U.S. Steel, which sued the Biden administration over the decision in January. The companies argued that the initial rejection lacked a factual national security basis and was politically motivated.

Trump had previously stated his opposition to foreign ownership of the storied U.S. steelmaker, but expressed openness to Japanese investment in its operations.

In February, standing alongside Japanese Prime Minister Shigeru Ishiba, Trump said Nippon Steel would “invest heavily in U.S. Steel, as opposed to [owning] it,” and welcomed the proposed capital infusion.

U.S. Steel said on April 7 that it appreciates Trump’s decision, which it said validates its decision to challenge Biden’s order.

“We look forward to continuing to work closely with President Trump and his Administration to finalize this significant and important investment, which will preserve existing jobs, create new jobs, enhance national security and secure a bright future for American manufacturing,” the company said in an email to The Epoch Times.

Nippon’s plan, announced in December 2023, aimed to acquire U.S. Steel to expand its global footprint and modernize the Pittsburgh-based company’s operations. The Japanese company had pledged more than $2.7 billion in investments, including major upgrades at steel plants in Pennsylvania and Indiana.

The Biden administration blocked the transaction after a divided CFIUS review, prompting the companies to appeal the decision in federal court. They argued that the acquisition would enhance U.S. competitiveness and help counter China’s growing dominance in the global steel industry.

Trump’s order makes clear that the new CFIUS review must include input from national security and trade officials, as well as a full opportunity for the companies to address concerns.

The memorandum states that the review will be “confidential” and in accordance with standard CFIUS procedures. Each participating agency must submit its position and reasoning in the final recommendation.

Trump’s action comes amid renewed emphasis on reviving U.S. manufacturing and strengthening industrial supply chains. The president has linked these efforts to his broader tariff strategy and reshoring agenda.

It remains to be seen whether Nippon will proceed with its bid or pivot fully to a partnership structure. Earlier this year, Trump said he would meet with Nippon’s leadership to discuss investment alternatives, stating, “I didn’t want it purchased, but investment I love.”

The original acquisition proposal drew bipartisan opposition from lawmakers and union groups concerned about foreign ownership. However, regional leaders in steel-producing areas such as Pennsylvania and Indiana have supported the deal, citing the risk of job losses without fresh capital.

The Epoch Times reached out to Nippon Steel for comment but did not receive a response by publication time.

Andrew Moran and Jack Phillips contributed to this report.