Trump Orders Fresh Review of Nippon Steel’s $14 Billion Bid for US Steel

President Donald Trump has initiated a new national security review of Nippon Steel’s proposed acquisition of U.S. Steel, breathing new life into the $14 billion transaction that had previously been blocked under the Biden administration.

According to a Wall Street Journal report, the Trump administration directed the Committee on Foreign Investment in the U.S. (Cfius) to undertake a fresh, independent review of the deal. This second look, the White House said Monday, would help determine whether additional action is necessary and potentially open a path for the Japanese steelmaker and U.S. Steel to finalize their long-pending agreement.

Nippon Steel welcomed the decision, stating that “an objective, fact-based review of our proposed partnership with U.S. Steel will show that it strengthens American economic and national security so that U.S. Steel remains a proud American company.”

The move triggered a surge in market confidence, with U.S. Steel shares jumping over 16% in afternoon trading. The company also expressed strong support for the administration’s action. “We appreciate and commend President Donald Trump’s leadership,” the company stated, adding that the president’s decision “validates our board’s bold decision to challenge President Biden’s unlawful order.”

Per the Wall Street Journal, the proposed deal had been sidelined in January when President Joe Biden blocked the acquisition following a national security review by Cfius. That decision is currently being contested in federal appeals court by Nippon Steel and U.S. Steel, who argue that the original review process under the Biden administration was neither fair nor comprehensive.

The revived review process will be conducted de novo, meaning the previous ruling will have no bearing on the outcome, according to White House officials. This approach gives the administration more room to craft a tailored national security agreement that might allow the companies to proceed with the deal under new terms.

Related: Trump Administration Seeks to Extend Deadlines in U.S. Steel and Nippon Steel Lawsuit

Nippon Steel’s interest in acquiring U.S. Steel is seen as a strategic push into the lucrative American market, where steel prices remain comparatively high. The Japanese firm has faced challenges at home, including dwindling demand and weak pricing, making a foothold in the U.S. increasingly attractive. However, the path forward remains fraught with political and labor opposition.

The United Steelworkers union continues to voice staunch opposition to the deal. “Regardless of how much scrutiny the proposed USS-Nippon deal receives, it does not alter the urgent threat it poses to our national and economic security, the long-term future of the steel industry or our members’ jobs,” said union president Dave McCall.

While both Biden and Trump had opposed the original terms of the merger, Trump has recently signaled openness to a restructured agreement. According to Wall Street Journal  reporting, the former president has encouraged the companies to explore an alternative arrangement, potentially allowing Nippon Steel to invest in U.S. Steel without taking full ownership.

Nippon Steel has responded that it is open to discussions with U.S. officials, though it emphasized that meaningful investment—particularly the kind necessary for advanced technological integration—would require equity ownership. The company has expressed reluctance to pursue a joint venture, arguing such an arrangement would limit its ability to deploy its technologies and management practices effectively.

The renewed review not only allows the Trump administration to reframe the deal but also offers strategic support for ongoing legal challenges to Biden’s earlier block. Legal experts cited by the Wall Street Journal  suggest the new Cfius process could strengthen the companies’ case that the original review lacked due process and fairness.

Source: Wall Street Journal