Can the US Steel-Nippon Steel merger come back to life?

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."

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."