Trump's Opposition Threatens $15 Billion U.S. Steel Acquisition

Former U.S. President Donald Trump has reiterated his opposition to the acquisition of U.S. Steel by Japan's Nippon Steel, casting significant doubt on the $15 billion deal. Trump's stance, expressed on Sunday, aligns with his previous comments from last Wednesday, where he voiced his disapproval of the potential sale of U.S. Steel to a foreign entity. This opposition has substantially dampened the prospects of the acquisition, which was announced by Nippon Steel in December 2023.

The acquisition has faced hurdles from the outset, with both Trump and his predecessor, Joe Biden, advocating for U.S. Steel to remain under American ownership. This position was particularly aimed at garnering support in Pennsylvania, the state where U.S. Steel is headquartered. Biden had previously blocked the deal in January 2025, citing national security concerns. However, the companies involved quickly filed a lawsuit, alleging that they were denied a fair national security review due to Biden's public opposition to the deal, which they claimed influenced the review process.

In response to Trump's latest remarks, both U.S. Steel and Nippon Steel have stated that they are working closely with the Trump administration to ensure that the deal proceeds as a significant investment. Japanese Prime Minister Kishida, during a parliamentary session in Tokyo on Monday, discussed the acquisition with Trump during their February meeting. Kishida emphasized the need to carefully examine the distinction between acquisition and investment under U.S. law, asserting that U.S. Steel would remain an American company while also benefiting Japanese interests.

The acquisition has been a contentious issue, with political figures on both sides of the aisle expressing concerns about foreign control of a critical U.S. industry. The deal's future remains uncertain, as it navigates through the complex landscape of political opposition and regulatory scrutiny. The political climate surrounding the acquisition highlights the delicate balance between economic interests and national security concerns, making it a pivotal moment for both the U.S. and Japan. The outcome of this deal will not only impact the steel industry but also set a precedent for future foreign investments in strategic sectors of the U.S. economy.