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Trump orders new reviews of Nippon Steel bids to acquire US steel

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Trump directs a new national security review on the $14.9 billion acquisition suspended by Biden, indicating a possible change in the US stance on the deal.

On April 7, President Donald Trump ordered a new review of a $14.9 billion acquisition proposal for US steel by Japanese Steel by Japan, months after the deal was blocked by its predecessor on national security concerns.

In a memorandum of understanding issued by the president on April 7th, Trump directed the Committee on Foreign Investment in the United States (CFIU) to carry out a new review of the transaction. The memorandum instructs the Commission to assess the potential national security risks of the transaction and provide recommendations to the President within 45 days.
The directive shows a shift from the Biden administration’s position. In early January, then-President Joe Biden blocked the acquisition citing the need to maintain the domestically owned steel industry. Biden described steelmaking as a strategic sector essential to the US security and resilient supply chain.
“The strong steel industry, owned and operated domestically, represents an essential national security priorities,” Biden said at the time.
Trump’s new order reopens the possibility of advancement in Japan and US steel, which sued the Biden administration over the January decision. The corporations argued that the initial denial lacked de facto national security standards and were politically motivated.

Trump previously stated his opposition to foreign ownership of a well-known US steelmaker, but expressed openness to Japan’s investment in the business.

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Standing with Japanese Prime Minister Isgar in February, Trump welcomed the proposed capital injection, saying that Nippon Steel would “invest heavily in US steel rather than owning it.”

US Steel said on April 7 that it appreciated Trump’s decision.

“We look forward to working closely with President Trump and his administration to continue working closely together to maintain existing jobs, create new jobs, strengthen national security, and ensure a bright future for American manufacturing,” the company said in an email to the Epoch era.

Nippon’s plans, announced in December 2023, aim to acquire US Steel to expand its global footprint and modernize the operations of the Pittsburgh-based company. Japanese companies had pledged to invest more than $2.7 billion, including major upgrades at steel factories in Pennsylvania and Indiana.

The Biden administration blocked the transaction after a split CFIUS review, urging businesses to appeal their decisions in federal court. They argued that the acquisition would help boost the US competitiveness and counter China’s growing advantage in the global steel industry.

Trump’s order reveals that the new CFIUS review should include opinions from national security and trade officials as well as the full opportunity for businesses to address their concerns.

The memorandum states that the review is “confidential” and follows standard CFIUS procedures. Each participating institution must submit its position and reasoning in its final recommendations.

Trump’s actions came amid a renewed focus on reviving US manufacturing and strengthening its industrial supply chain. The President has linked these efforts to his broader tariff strategies and repurpose agenda.

It is still unclear whether Nippon is moving forward with its bid or whether it will fully pivot on the partnership structure. Earlier this year, Trump said he would meet with Japan’s leadership to discuss investment alternatives, saying he would “not want to buy it but I love investing.”

The original acquisition proposal elicited bipartisan opposition from lawmakers and union groups concerned about foreign ownership. However, regional leaders in steel production areas such as Pennsylvania and Indiana support the deal, citing the risk of fresh capitalless unemployment.

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

Andrew Moran and Jack Phillips contributed to this report.



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