WASHINGTON — On Friday, President Donald Trump indicated that Nippon Steel may not proceed with its planned acquisition of U.S. Steel, opting instead for an investment in the significant American company.

During a press conference alongside Japanese Prime Minister Shigeru Ishiba, Trump mistakenly referred to Nippon Steel as “Nissan,” which is actually a car manufacturer. However, the discussions surrounding Nippon Steel’s involvement have stirred controversy, as both Trump and former President Joe Biden expressed intentions to prevent the merger.

“They’ll be looking at an investment rather than a purchase,” Trump announced about Nippon Steel’s plans. He mentioned that he would be meeting with Nippon Steel’s leadership next week to facilitate the discussions, asserting that he would play a role in “mediation and arbitration.”

Prime Minister Ishiba described the forthcoming investment as advantageous for both parties, stating that it would bring Japanese technology to U.S. Steel mills.

In December 2023, Nippon Steel made a significant move by proposing a nearly $15 billion offer to acquire U.S. Steel, igniting a political debate in the context of the approaching 2024 presidential election. U.S. Steel is crucial to the economic landscape of Pennsylvania, a pivotal swing state. Biden, in alignment with the United Steelworkers labor union, aimed to thwart the merger, while Trump, during his campaign, openly opposed the acquisition.

Furthermore, in December, the Committee on Foreign Investment in the United States (CFIUS) submitted its long-awaited report addressing national security concerns regarding the proposed merger to Biden. However, the panel was unable to reach a consensus on whether the merger posed any national security risks. The Biden administration subsequently extended the deadline for Nippon Steel to withdraw from the acquisition, effectively placing the decision in Trump’s hands regarding the next course of action.