WASHINGTON — President Donald Trump on Friday suggested that Nippon Steel would no longer buy U.S. Steel as planned, but the Japanese company would instead invest in the symbolically important American business.
The U.S. president mistakenly referred to Nippon Steel as “Nissan,” the Japanese automaker. But it’s Nippon Steel’s bid that generated controversy as both Trump and his predecessor in the White House, Joe Biden, vowed to block the merger.
Nippon Steel “is going to be doing something very exciting about U.S. Steel,” Trump said at a news conference with Japanese Prime Minister Shigeru Ishiba. “They’ll be looking at an investment rather than a purchase.”
It was unclear what the details of the investment would be, but Trump said he would meet with the head of Nippon Steel next week and he would be involved “to mediate and arbitrate.”
Nippon Steel in December 2023 made what was a nearly $15 billion bid to buy U.S. Steel, creating a sudden political issue in the 2024 presidential election as the Pittsburgh-headquartered steelmaker was key to the identity of the political swing state of Pennsylvania. Biden and later, Vice President Kamala Harris agreed with the United Steelworkers, the labor union, in seeking to block the merger, while Trump as a candidate said outright he opposed the purchase.
The companies pledged further investment in some U.S. Steel operations, but the lack of clarity about what the deal would mean for U.S. Steel’s operations in Granite City rankled local and federal political leaders and steelworkers who’ve said they have had little contact from the companies about how the merger would impact operations in the Metro East.
Rep. Nikki Budzinski, who represents Granite City in Congress, had said previously the deal at minimum would need to be renegotiated.
Budzinski could not be reached for comment Friday.
A government panel that considers national security risks couldn’t reach a decision on a recommendation for whether Biden should reject the deal or not. Biden ultimately did block it early last month, prompting a lawsuit from the firms.
“The Companies remain steadfast that the Transaction will enhance, not threaten, United States’ national security, protect U. S. Steel workers, revitalize jobs in communities that rely on American steel and make American Steel bigger and better,” U.S. Steel and Nippon said in a statement Feb. 3 after filing court briefs earlier this week. “Only the Companies’ partnership will deliver $55 per share to U.S. Steel stockholders and guarantee the significant capital investments and technology sharing needed to ensure a strong U. S. Steel for generations to come. Importantly, it would create an American steel champion that is well-positioned to compete against China.”
U.S. Steel did not immediately respond to a request for comment Friday afternoon.
