President Donald Trump cleared Nippon Steel Corp.’s $14.9 billion acquisition of United States Steel Corp., reversing his previous opposition to a deal that Biden blocked in January citing national security concerns. The approval marks the first reversal of a presidential block of a Japanese company’s U.S. acquisition.
U.S. Steel shares surged more than 20% to close at $52.01 per share after Trump’s announcement, approaching the $55 per share that Nippon Steel offered in late 2023. The president described the arrangement as a “partnership” though offered few specifics about whether Japan’s fourth-largest steelmaker would complete its full takeover or pursue a modified investment structure.
Trump said the partnership would add $14 billion to the U.S. economy and create at least 70,000 jobs, with the bulk of investment occurring over the next 14 months. The companies have promised to maintain U.S. Steel’s Pittsburgh headquarters and domestic production. The timing proved crucial as the takeover agreement stipulated a mid-June deadline, with Nippon Steel facing a $565 million reverse breakup fee if the deal collapsed.
The approval represents a dramatic shift from Trump’s earlier stance. Both Trump and Biden had opposed the deal during the 2024 campaign, with Biden blocking the transaction in January after the Committee on Foreign Investment in the United States failed to reach consensus on national security risks.
Trump ordered a new CFIUS review in April, giving the committee 45 days to determine whether the companies’ proposed measures would mitigate security concerns. The reversal comes after the president appeared to soften his position following meetings with Japanese Prime Minister Shigeru Ishiba. Nippon Steel had increased its investment pledge to $14 billion just before the CFIUS deadline, sweetening terms as it seeks to enter the relatively protected U.S. market insulated from Chinese steel overcapacity by Trump’s 25% steel tariffs.
The acquisition would help Nippon Steel tap growing U.S. demand for steel in electric vehicles and infrastructure, contrasting with Japan’s shrinking market. U.S. Steel, which has posted consecutive quarterly losses, expects the deal to contribute $690 million to combined profits.
