WASHINGTON — On Friday, President Donald Trump indicated that Nippon Steel may not proceed with its planned acquisition of U.S. Steel, instead opting to invest in the notable American firm. Trump mistakenly referred to Nippon Steel as “Nissan,” the well-known Japanese car manufacturer. However, the focus remains on Nippon Steel’s controversial bid, which both Trump and former President Joe Biden have expressed intentions to thwart.

During a news conference with Japanese Prime Minister Shigeru Ishiba, Trump remarked, “Nippon Steel is going to be doing something very exciting about U.S. Steel. They’ll be looking at an investment rather than a purchase.” The specifics of this investment remains uncertain, but Trump stated he plans to meet with Nippon Steel’s leadership next week, indicating he would play a role in mediation and negotiation.

Prime Minister Ishiba characterized the proposed investment as advantageous for both parties, mentioning that Japanese technological advancements would be brought to U.S. Steel production facilities. In December 2023, Nippon Steel made a substantial bid of nearly $15 billion to acquire U.S. Steel, sparking a political discourse pertinent to the 2024 presidential election — particularly because U.S. Steel is integral to Pennsylvania’s identity, a key swing state.

Biden aligned himself with the United Steelworkers union, both firmly opposing the merger, while Trump, during his candidacy, expressed his stance against the acquisition as well. Recently, a significant government committee deliberated on national security implications surrounding Nippon Steel’s proposed deal, yet it could not reach a definitive conclusion regarding these risks. Consequently, the matter has been referred to President Biden, who has expressed his disapproval.

In December, the Committee on Foreign Investment in the United States (CFIUS) delivered a comprehensive report to Biden addressing the potential national security implications of the merger. However, due to their inability to come to an agreement on the risks involved, the Biden administration extended a timeline for Nippon Steel to withdraw its proposal, effectively placing the next moves in the hands of Trump.