President Donald Trump said on Thursday he was not sure U.S. Steel (X.N) needs to make a deal with Nippon Steel (5401.T) because of his tariff policy, casting additional doubt over the future of the proposed tie-up.
"U.S. Steel is going to do very well now because of tariffs, and I don't know why they even need a deal," Trump told reporters during a Cabinet meeting.
Earlier U.S. Steel said it and Nippon Steel were working closely with the Trump administration "to secure a significant investment," following earlier comments Trump made that dimmed hopes for a greenlight of the companies' long-sought union.
Trump said on Wednesday he did not want to see U.S. Steel "go to Japan," sending its shares down 7% amid fears his comments signaled renewed reservations about Nippon's $14 billion bid for the 124-year-old American firm.
Asked to clarify on Thursday, Trump said U.S. Steel was "one of the great names in the history of our country" and said of Nippon: "Why can't they just build a plant themselves?"
Trump said he loved Japan but expressed concern about a foreign country buying the company.
"Somebody else may want it," Trump said.
He said he felt better about Nippon being an investor in U.S. Steel but suggested that could lead to Nippon owning the whole company, something he suggested he did not want.
U.S. Steel's earlier statement suggested the company remained positive about a deal. Nippon Steel declined comment.
The original deal for Nippon to buy U.S. Steel, which was announced in December 2023, has faced headwinds from the start. Both former President Joe Biden and Trump last year asserted that U.S. Steel should remain American-owned as they sought to win over voters in the swing state of Pennsylvania, where the company is headquartered, during a hotly contested election.
In January 2025, Biden blocked the transaction on national security grounds. But the parties quickly sued, alleging they were denied a fair national security review, because Biden had prejudiced the process via his public opposition to the deal in a bid to win reelection.
Trump, who took office for the second time on January 20, began his term noting that he "wouldn't mind" if Nippon Steel took a minority stake in U.S. Steel, implying he would seek a dramatic overhaul of the deal structure.
But his government's recent actions boosted hopes for approval of a full takeover.
On Monday, Trump directed the Committee on Foreign Investment in the United States, which reviews foreign investments for national security risks, to take a fresh look at the all-cash bid for U.S. Steel to help determine if "further action" would be appropriate.
The same day, his administration and the companies asked an appeals court to pause their litigation until June 5 while CFIUS reviews the tie-up again, noting that the process has the potential to "fully resolve" the companies' claims.
