Trump says it’s not sure whether U.S. steel needs to reach a deal with Japan, thanks to tariffs
Earlier, US Steel said Nippon Steel was working closely with the Trump administration to “ensure a major investment”, and Trump’s earlier comments have given high hopes for the long-standing union of these companies.
Trump said on Wednesday that he did not want to see U.S. Steel “go to Japan” because of concerns that his comments indicated a reservation for Japan’s $14 billion bid for the 124-year-old U.S. company, thus dropping its shares by 7%.
Trump was asked to clarify Thursday that U.S. steel is “a great name in the history of our nation” and said of Japan: “Why can’t they build plants themselves?”
Trump said he loves Japan but expressed concern about foreign buying companies.
“Others may want it,” Trump said, saying he felt better about Nippon becoming an investor in U.S. steel, but suggested that could lead to Nippon owning the entire company, which he advised he didn’t want. The company remains positive about the deal, an early statement from US Steel suggests. Nippon Steel declined to comment.
Nippon’s initial deal for US Steel was announced in December 2023 and faced a headwind from the outset. Former Presidents Joe Biden and Trump both asserted last year that Us Steel won voters in Pennsylvania’s swing state, and that the company should maintain U.S. stake in a competitive election.
In January 2025, Biden blocked the deal on national security grounds. But the parties promptly sued, alleging that they were denied a fair national security review as Biden biased the process by making the process biased by public opposition to the deal.
Trump, who took office for the second time on January 20, began his term, noting that he “don’t mind” that Japanese Steel has a minority stake in U.S. Steel, which means he will seek to make a huge reform of the transaction structure.
But recent actions by his administration have raised hopes for a full acquisition.
On Monday, Trump directed a review of foreign investment in national security risks at the U.S. Foreign Investment Commission to revisit U.S. all-cash bids for U.S. Steel to help determine whether “further action” is applicable.
On the same day, his government and company asked the Court of Appeal to suspend its lawsuit until June 5, while CFIUS reviewed the cooperation again, noting that the process had the potential to “completely resolve” the company’s claims.
