Former President Donald Trump expressed strong opposition to the potential sale of US Steel to Japan's Nippon Steel, calling it a move he does not want to see happen.
Trump's comments, made Wednesday, were surprising as they contradicted recent actions taken by the Trump administration regarding the proposed $14 billion bid.
"We don't want to see it go to Japan," Trump said during a public address, clarifying that although the US values its relationship with Japan, he does not support the idea of Nippon Steel taking over the iconic American steel producer, Reuters said.
"We love Japan, but we don't want it to go to Japan or any other place," he added, signaling that his administration is working to prevent the deal from going through.
The comment came just days after the Trump administration had instructed a national security panel to review Nippon Steel's acquisition bid for US Steel.
This action raised hopes that the deal could eventually be approved. However, Trump's sudden remarks have cast uncertainty over the deal's future.
*TRUMP: DON'T WANT US STEEL TO GO TO JAPAN
— Investing.com (@Investingcom) April 10, 2025
*TRUMP: WE LOVE JAPAN BUT US STEEL IS A VERY SPECIAL COMPANY
*US STEEL $X SHARES SINK 12% POSTMARKET AFTER TRUMP COMMENTS pic.twitter.com/dWmUL5zJwj
Trump and Biden's Opposition to US Steel Sale Deepens Market Volatility
According to NY Post, the shares of US Steel dropped by 13% in after-hours trading following Trump's comments, highlighting the market's reaction to the changing political landscape surrounding the merger.
The bid, which was announced in December 2023, has already faced significant opposition across the political spectrum.
Both Trump and his rival in the 2024 presidential election, President Joe Biden, had pledged to block the sale, with national security concerns playing a key role in their objections.
In January, President Biden had halted the deal on national security grounds, citing concerns over the impact of the merger on critical American infrastructure.
After this move, Nippon Steel and US Steel filed a lawsuit against the Committee on Foreign Investment in the United States (CFIUS), accusing the Biden administration of unfairly prejudicing the decision.
The companies claimed that Biden's opposition was politically motivated, aimed at winning support from the United Steelworkers union in Pennsylvania, where US Steel is headquartered.
As part of ongoing litigation, the Trump administration filed a motion last month to extend deadlines for the merger talks. Both sides have agreed to pause their litigation until June 5, allowing the CFIUS to further review the merger.
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