U.S. President Donald Trump reaffirmed his opposition to Nippon Steel’s $15 billion bid to acquire U.S. Steel, stating that a foreign company should not control such a strategic American asset. His remarks, made aboard Air Force One on Sunday, echo similar comments from last week that triggered a 7% drop in U.S. Steel’s shares.
The deal, announced in December 2023, has faced political and regulatory hurdles from the outset. Trump’s latest comments come amid ongoing discussions between U.S. Steel and Nippon Steel, which claim they are collaborating with the administration to secure a major investment while addressing national interests.
In Tokyo, Japanese Prime Minister Shigeru Ishiba addressed the controversy during a parliamentary session, acknowledging legal complexities under U.S. law and emphasizing the need to balance American control with Japanese interests. “There must be a point where U.S. Steel remains American, yet Japanese goals are met,” Ishiba stated, referencing his February meeting with Trump.
The acquisition has become a central issue in the 2024 and 2025 political landscape, especially in Pennsylvania, where U.S. Steel is headquartered. Both Trump and then-President Joe Biden previously expressed support for keeping the company under U.S. ownership to appeal to swing-state voters.
In January 2025, President Biden formally blocked the Nippon Steel takeover, citing national security concerns. The involved parties swiftly filed a lawsuit, arguing that the review process was biased and politically motivated, aimed at influencing voter sentiment ahead of the election.
As national security and economic competitiveness remain top priorities, the fate of the Nippon-U.S. Steel deal continues to hang in the balance, with legal challenges and political scrutiny intensifying.