A drone view shows Gary Works, the largest integrated steel mill in the U.S., which is operated by U.S. Steel, in Gary, Indiana, U.S., December 12, 2024.
Vincent Alban | Reuters
U.S. President Donald Trump said on Wednesday he does not want U.S. Steel Corp to go to Japan, suggesting he does not support Nippon Steel’s 5401.T bid for the American steel producer.
The comment appeared to contradict recent actions by the Trump administration. On Monday, Trump directed a national security panel to take a fresh look at Nippon Steel’s $14 billion bid for U.S. Steel to help determine if “further action” is appropriate, raising hopes the deal could gain an elusive green light.
Following Trump’s latest comment, shares of U.S. Steel fell 13% in after-hours trading on Wednesday.
“We don’t want to see it go to Japan,” Trump said, adding “We love Japan.”
“We don’t want it to go to Japan or any other place, and we’re working with them,” Trump said.
U.S. Steel and Nippon Steel did not immediately respond to requests for comment.
Outgoing President Joe Biden had blocked the merger in January on national security grounds.
After Biden’s decision, the two companies sued the Committee on Foreign Investment in the United States, which scrutinizes foreign investments for national security risks, alleging Biden had prejudiced the committee’s decision and violated the companies’ right to a fair review.
The deal was announced in December 2023 and almost immediately ran into opposition across the political spectrum ahead of the November 5 U.S. presidential election. Both then-candidates Trump and Biden vowed to block the purchase of the storied American company.
The companies had argued that Biden opposed the deal when he was running for reelection to win support from the United Steelworkers union in the battleground state of Pennsylvania, where U.S. Steel is headquartered. The Biden administration had defended the review as essential to protecting security, infrastructure, and supply chains.
Last month, the Trump administration filed a motion to extend two deadlines in the lawsuit to give the government more time to wrap up merger talks with the firms.
Late on Monday, the Trump administration and the companies asked an appeals court to pause their litigation until June 5 while CFIUS reviews the tie-up again, noting that the process has the potential to “fully resolve” the companies’ claims.
