- President Donald Trump ordered a new review of the stalled deal between Japan’s Nippon Steel and U.S. Steel. He wants the Committee on Foreign Investment to conduct an examination in the U.S.
- The Biden administration halted the $14 billion deal, entangling it in federal appeals court.
- Trump said that he wants the new review completed within the next 45 days.
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President Donald Trump ordered a U.S. national security panel on Monday, April 7, to review the stalled deal between Japan’s Nippon Steel and U.S. Steel.
“I direct the Committee on Foreign Investment in the United States … to conduct a review of the acquisition of U.S. Steel by (Nippon Steel) to assist me in determining whether further action in this matter may be appropriate,” Trump said in a memo.
The agreement would lead to Nippon Steel purchasing U.S. Steel for $14 billion.
What are Trump’s objectives?
Trump has urged Nippon Steel and U.S. Steel to revise their deal so that the Japanese company would invest in U.S. Steel without completely owning the American firm.
The Committee on Foreign Investment in the U.S. would conduct the review.
The Wall Street Journal reported that such a review would give the Trump administration the flexibility to broker an agreement and might lead to a completed deal.
Trump said he wants the new review completed within 45 days.
What is the history of the merger?
The previous deal, struck by the two companies in 2023, would shift the U.S. steelmaker to Japan.
The United Steelworkers opposed the deal while shareholders approved the sale.
The Union said the future of steelmaking in the Mon Valley of Pennsylvania is at stake.
However, U.S. Steel warned that if the deal does not go through, it could transfer its headquarters out of Pittsburgh and take thousands of jobs with it.
What is the response to this new development?
The United Steelworkers union president told the WSJ that regardless of how much scrutiny the proposed deal receives, their position has not changed, and such a deal remains a threat to national and economic security.
Nippon Steel commended Trump for his leadership and said it validates the administration’s challenge of Biden’s order.
