Can the US Steel-Nippon Steel merger come back to life?
President Trump opposed the deal. But he could be flexible.


If you thought Nippon Steel's bid to acquire U.S. Steel was dead in the water, think again. The merger was blocked by President Joe Biden last year, but President Donald Trump is in the White House now — and he may be a bit more flexible about the deal.
Trump has "welcomed Japanese investment in the technology sector," said Reuters. That's why he met Thursday with U.S. Steel CEO David Burritt ahead of a Friday summit with Japanese Prime Minister Shigeru Ishiba at the White House. During the presidential campaign, Trump said he was "totally against" the acquisition of the American company by a foreign firm. But Nippon Steel executives have been making the case that their proposal fits Trump's "America First" agenda. Takahiro Mori, Nippon Steel's vice chair, said he hopes the Trump-Ishiba meeting will "open the way for a deal."
What did the commentators say?
Trump "should let Nippon buy U.S. Steel," said Michael Schiffer at Just Security. The merger block was "one of the biggest policy disappointments of the Biden administration." But putting the two companies together is a "significant opportunity" to strengthen the West "against China in a critical national security area." The new president is often willing to "reopen, reconsider, and renegotiate deals," so the seemingly scuttled steel deal is an opportunity for Trump to do what he does best, Schiffer said: "A good deal for domestic manufacturing and national security is sitting right in front of him."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
If not Trump, then perhaps the courts. Nippon Steel and U.S. Steel have "already taken legal action" to challenge Biden's decision, said Patrick Murphy at The Hill. They should succeed. Japan is a "key partner in countering China's growing influence," and strengthening economic ties with Tokyo "aligns fully with our broader Indo-Pacific strategy." Letting Biden's decision stand will "discourage foreign investment in American manufacturing" and ultimately force U.S. taxpayers to "bail out failing companies."
What next?
Trump's arrival in the White House gives Nippon Steel additional reason to complete the merger. The deal is a "key option for countering the impact of tariffs" the Trump administration is imposing on American trade partners, said Nikkei Asia. Trump's proposed tariffs would "significantly change the structure" of steel demand itself, Mori told reporters in an earnings call. One of the president's aims with tariffs is to protect American manufacturing, so "it's clearly better to be inside" the U.S., Mori said.
But Trump's inclinations are murky. He "regularly stated" his opposition to the merger before taking office, said Bloomberg. Since the inauguration, though, he and Vice President J.D. Vance have been "muted about the takeover." Mori, the Nippon Steel executive, is optimistic an agreement can be reached: "We are hoping that Trump gets the message, that this is the best deal and that opens pathways forward."
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Joel Mathis is a writer with 30 years of newspaper and online journalism experience. His work also regularly appears in National Geographic and The Kansas City Star. His awards include best online commentary at the Online News Association and (twice) at the City and Regional Magazine Association.
-
How global conflicts are reshaping flight paths
Under the Radar Airlines are having to take longer and convoluted routes to avoid conflict zones
-
Zohran Mamdani: the young progressive likely to be New York City's next mayor
In The Spotlight The policies and experience that led to his meteoric rise
-
The best film reboots of all time
The Week Recommends Creativity and imagination are often required to breathe fresh life into old material
-
Doing the hustle: Are side gigs a sign of impending recession?
In the Spotlight More workers are 'padding their finances while they can'
-
'Tariff stacking' is creating problems for businesses
The Explainer Imports from China are the most heavily affected
-
How will the feds' 'golden share' of US Steel work?
Today's Big Question Trump 'just quasi-nationalized' a major company
-
Why are electric bills rising so fast?
Today's Big Question Data centers for artificial intelligence and the cost of natural gas both contribute
-
'Wrench attacks' are targeting wealthy crypto moguls
The Explainer The attacks are named for physical coercion that can be used to gain crypto passwords
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
What is the dollar's future after Moody's downgrade?
Today's Big Question Trump trade wars and growing debt have investors looking elsewhere
-
Grocery stores under fire for overcharging during cost-of-living crisis
The Explainer A recent investigation has put the spotlight on Kroger, but it is not the only chain being pinpointed