Japanese Nippon to invest in US Steel instead of $14B acquisition, says Trump

U.S. President Donald Trump announced on Friday that Japan's Nippon Steel will majorly invest in U.S. Steel rather than acquire the whole company.

Trump, referring to the Japanese car company Nissan but apparently meaning Nippon Steel, said "They'll be looking at an investment rather than a purchase." Spokespeople for Nippon Steel and U.S. Steel did not respond to a request for comment. U.S. Steel's shares closed down 5.8% on the news.

The announcement marks a shift in tone from Trump, who heavily criticized Nippon's $14.9 billion takeover offer during the 2024 presidential election campaign.

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Efforts to keep US Steel in 'American hands'

Former U.S. president Joe Biden blocked the deal shortly before he left office last month on national security grounds, sparking a joint lawsuit from the two firms—and condemnation from Japanese Prime Minister Shigeru Ishiba.

U.S. President Donald Trump (R) and Japanese Prime Minister Shigeru Ishiba (L) hold a joint press conference following talks, in the East Room of the White House in Washington, D.C., on Feb. 7, 2025. (AFP Photo)

In the suit filed on Jan. 6, Nippon Steel and U.S. Steel said Biden had improperly used his influence and blocked the deal "for purely political reasons" to gain favor with workers' unions.

In response, the U.S. authorities announced they had extended the deadline for the Japanese firm to abandon its acquisition of U.S. Steel until June 18, extending an initial 30-day deadline.

The U.S. Steel Mon Valley Works Edgar Thomson Plant along the Monongahela River in Braddock, Pennsylvania, as seen from North Braddock, Pennsylvania, on June 4, 2024. (AFP Photo)

Trump's remarks suggest his administration is open to Nippon Steel's investment in the U.S. steel giant so long as it does not assume overall control —a step that could in theory ensure it remains in American hands.

"Our concerns regarding Nippon's continued interest in U.S. Steel remain unchanged," United Steelworkers international president David McCall said in a statement.

"Nippon has proven itself to be a serial trade cheater with a history of dumping its products into our markets," he said, adding that the U.S. steelworkers' union had not been in contact with either the company or the Trump administration about Nippon's proposed investment.

"While we await the details of the proposed investment, we encourage President Trump to continue safeguarding the long-term future of the domestic steel industry by instead seeking American alternatives," he added.