In a surprising turn of events, President Donald Trump revealed on Friday that Nippon Steel’s intended purchase of U.S. Steel may no longer proceed as initially planned. Instead, the Japanese company is considering making a significant investment in the symbolically significant American business. However, in a slip of the tongue, President Trump mistakenly referred to Nippon Steel as “Nissan,” the well-known Japanese automaker. The proposed bid by Nippon Steel has stirred controversy, with both Trump and his predecessor, Joe Biden, expressing intentions to block the merger.
During a press conference held with Japanese Prime Minister Shigeru Ishiba, President Trump shared, “Nippon Steel is going to be doing something very exciting about U.S. Steel. They’ll be looking at an investment rather than a purchase.” Although the specifics of this investment remain unclear, Trump stated his upcoming meeting with the head of Nippon Steel and his willingness to play a role in mediating and arbitrating the situation.
Prime Minister Ishiba characterized the investment as mutually advantageous, highlighting that Japanese technology would be introduced to U.S. Steel mills. Notably, in December 2023, Nippon Steel had proposed a substantial bid of nearly $15 billion to acquire U.S. Steel. This move had swiftly become a focal point in the 2024 presidential election, particularly due to the significance of the Pittsburgh-based steelmaker in the pivotal swing state of Pennsylvania. While Biden aligned with the United Steelworkers’ opposition to the merger, Trump had vocally stated his disapproval of the acquisition.
The deliberations surrounding the potential national security implications of the proposed $15 billion deal for Nippon Steel to take over U.S. Steel reached a critical point when a government panel failed to reach a consensus on the matter. As a result, the decision has now fallen into the hands of President Joe Biden, who stands against the deal. Despite the Committee on Foreign Investment in the United States, known as CFIUS, submitting a detailed report outlining national security concerns regarding the merger, the lack of agreement within the panel led to an extension of the deadline for Nippon Steel to reconsider the deal. This extension effectively grants President Trump the authority to determine the next course of action.