Trump orders security review of Nippon Steel's acquisition attempt

On April 7, 2025, President Donald Trump directed the Committee on Foreign Investment in the United States (CFIUS) to conduct a review of the proposed acquisition of U.S. Steel by Japan's Nippon Steel. This review comes in response to an earlier block by former President Joe Biden, who cited national security concerns regarding foreign control over a major American steel producer. The order demands that CFIUS analyze potential risks within 45 days, a timeline that underscores the urgency of the matter amid concerns about the domestic steel industry and supply chain resilience. The proposed deal, valued at nearly $15 billion, stirred significant political debate last year, especially considering its implications for jobs and economic stability in the United States. Late bids from Nippon Steel followed a prolonged court battle initiated after Biden's decision to halt the merger in January 2024. The White House revealed that Trump is exploring ways to modify the terms of the deal, suggesting that Nippon Steel could invest in U.S. Steel without full ownership, a sentiment aligned with Trump's ongoing efforts to promote American economic interests. The current stock market reaction indicates optimism, with U.S. Steel's shares experiencing a notable increase in value following the announcement of the review. This development highlights the intersection of international investment and national security, as both the current and previous administrations expressed unease over foreign control of key American industries. Trump's administration, having taken a different stance from Biden's, aims to reassess the situation with an objective perspective and possibly mitigate risk factors that would allow for a scenario where Nippon Steel can engage with U.S. Steel, while still safeguarding American interests. The moves by both leaders reflect a larger trend of increasing scrutiny on foreign investments in strategic industries and concern regarding potential repercussions for domestic markets and labor forces. As discussions surrounding the merger persist, the future of the U.S. Steel acquisition remains uncertain, with union opposition and political tensions complicating the landscape. The United Steelworkers union continues to campaign against the merger, emphasizing its potential negative impact on American workers and the domestic steel supply chain. With Trump recently describing the review as necessary for determining whether additional actions are warranted, the focus will continue to be on protecting national interests as well as ensuring job stability in the American steel sector moving forward.