Trump has directed a new national security review of the $14.9 billion acquisition halted by Biden, signaling a possible shift in the U.S. stance on the deal.
President Donald Trump on Monday ordered a new review of the proposed $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, months after the deal was blocked by his predecessor over national security concerns.
In a presidential memorandum issued on April 7, Trump directed the Committee on Foreign Investment in the United States (CFIUS) to conduct a new review of the transaction. The memorandum instructs the committee to evaluate the deal’s potential national security risks and to provide the president with recommendations within 45 days.
The directive marks a shift from the Biden administration’s position. In early January, then-President Joe Biden blocked the acquisition, citing the need to maintain a domestically owned steel industry. Biden described steelmaking as a strategic sector vital to U.S. security and resilient supply chains.
“A strong domestically owned and operated steel industry represents an essential national security priority,” Biden said at the time.
Trump’s new order reopens the possibility of a path forward for Nippon Steel and U.S. Steel, which sued the Biden administration over the decision in January. The companies argued that the initial rejection lacked a factual national security basis and was politically motivated.
Trump had previously stated his opposition to foreign ownership of the storied American steelmaker, but expressed openness to Japanese investment in its operations.
In February, standing alongside Japanese Prime Minister Shigeru Ishiba, Trump said Nippon Steel would “invest heavily in U.S. Steel, as opposed to own it,” and welcomed the proposed capital infusion.
U.S. Steel said on Monday it appreciates Trump’s decision, which it said validates its decision to challenge Biden’s order.
“We look forward to continuing to work closely with President Trump and his Administration to finalize this significant and important investment, which will preserve existing jobs, create new jobs, enhance national security and secure a bright future for American manufacturing,” the company said in an email to The Epoch Times.
By Chase Smith
