On Wednesday, former President Donald Trump voiced his opposition to the potential sale of U.S. Steel, a major American steelmaker, to Japanese interests.
Speaking to reporters at his office, Trump emphasized the importance of U.S. Steel to the United States and stated that his opposition applies to Japanese investors and all foreign capital.
His remarks follow his direct directive to the Committee on Foreign Investment in the United States (CFIUS) to review Nippon Steel’s proposed acquisition of U.S. Steel.
Trump instructed CFIUS to reverse the Biden administration’s earlier decision to halt the deal and conduct a 45-day reassessment of potential national security risks. He is expected to personally review the committee’s findings for up to an additional 15 days.
Although Trump has historically opposed the sale of key U.S. steel companies to foreign buyers, his recent push for a review had led some industry analysts to speculate about a potential shift in his stance. However, his latest comments have reaffirmed his opposition to the deal.
Following Trump’s statement, U.S. Steel’s stock dropped by 16%, falling from around $45 per share to as low as $38.
Reports indicate that Nippon Steel had proposed an additional $7 billion investment following the completion of the U.S. Steel acquisition.
Nippon Steel agreed to acquire U.S. Steel in December 2023 and sought approval from the U.S. government. However, the Biden administration rejected the deal, citing concerns over national security and the protection of critical supply chains.
Despite his general opposition to the sale, Trump suggested in February that he might be open to Nippon Steel acquiring a minority stake in the company.
Founded in 1901, U.S. Steel is a symbol of American industry. It was established when financier J.P. Morgan consolidated several steel companies, including Andrew Carnegie’s Carnegie Steel.
