Nippon Steel’s US Steel bid update: Trump orders new review

President Donald Trump has directed a key US national security panel to reevaluate Nippon Steel’s proposed acquisition of US Steel, reigniting hopes that the high-profile deal could still move forward.

The move sent US Steel shares soaring over 13% as investors bet on a possible reversal of earlier opposition based on national security concerns.

In an official memo released Monday, Trump stated,

I direct the Committee on Foreign Investment in the United States (CFIUS) to conduct a review of the acquisition of US Steel by Nippon Steel to assist me in determining whether further action in this matter may be appropriate.

Both Nippon Steel and US Steel declined immediate comment following the directive.

The review order sparked optimism across financial markets, as many interpreted it as a sign the Trump administration may approve the $14.1 billion merger that former President Joe Biden had previously blocked, citing national security risks.

After Biden’s rejection earlier this year, Nippon Steel and US Steel sued CFIUS, arguing that the decision was biased and denied them a fair review.

The companies alleged Biden’s move was politically motivated, aimed at winning the favor of the United Steelworkers (USW) union in Pennsylvania—a crucial battleground state where US Steel is headquartered—ahead of the 2024 presidential election.

Last month, the Trump administration requested more time to extend deadlines in the lawsuit, seeking to allow further discussions between the government and the two companies regarding the merger.

Trump’s decision to reopen the review process now offers a potential lifeline to the deal, which could have major implications for the future of US industrial policy and the global steel market.

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