President Donald Trump is not changing his mind about opposing Japanese company Nippon Steel’s attempt to purchase well-known American steel producer U.S. Steel.
Trump said Friday that Nippon Steel’s proposed $14 billion deal with U.S. Steel will not be going through, and instead Nippon Steel will pour a substantial investment into U.S. Steel.
“U.S. Steel is a very important company to us. It was the greatest company in the world for 15 years, many years ago, 80 years ago. And we didn’t want to see that leave. And it wouldn’t actually leave. But the concept, psychologically, not good. So they’ve agreed to invest heavily in U.S. Steel as opposed to own it, and that sounds very exciting,” Trump said of Nippon Steel during a Friday press conference with Japanese Prime Minister Shigeru Ishiba.
Trump’s comments follow news reports from earlier in the day suggesting that Trump was considering changing his mind about opposing the transaction. He did not disclose any specific details about the investment and said he and other U.S. officials will be meeting with Nippon Steel’s chief executive next week.
“They’ll work out the details. I’ll be there to mediate and arbitrate,” Trump said.
Then-President Joe Biden blocked Nippon Steel’s purchase with an executive order before his term ended last month. He made the decision on national security grounds following an assessment from an inter-agency panel tasked with reviewing foreign investments in the U.S. that significantly delayed Nippon Steel’s attempted purchase.
The Biden administration delayed the executive order’s implementation until June, potentially giving the companies a lifeline with the new Trump administration. The companies quickly pursued a legal challenge to Biden’s order, and it remains to be seen whether that lawsuit will continue. Nippon Steel and U.S. Steel have alleged that Biden stopped the merger for political purposes and violated their due process in doing so.
Biden and Trump both opposed the deal from the onset, as did their lieutenants, former Vice President Kamala Harris and current Vice President JD Vance. Populist opposition to Nippon Steel’s purchase stemmed from fears about potential job losses and the belief that Pennsylvania-based U.S. Steel should remain American-owned.
Political opposition to the deal from Democrats and Republicans alike took place under the backdrop of the 2024 presidential election, where working class voters in Pennsylvania were considered paramount to deciding both parties’ fortunes. Trump ultimately defeated Harris decisively, taking home Pennsylvania and every other swing state on the political map.
Former Vice President Mike Pence and other influential political and business officials supported the deal, arguing it would help counter China’s growing steel market share and create American jobs. For decades, Japan has been a close American ally and one of the U.S. economy’s largest trading partners.