Trump says Nippon Steel will 'invest heavily' in US Steel, drop takeover bid

Former U.S. President Donald Trump stated that Nippon Steel would abandon its $14.9 billion plan to acquire U.S. Steel. Trump revealed this information while speaking at the White House alongside Japanese Prime Minister Shigeru Ishiba. Trump indicated that Nippon Steel would "invest heavily" in U.S. Steel but would not acquire a majority stake, ensuring continued American control.

Previously, the Biden administration blocked the Japanese company's acquisition attempt of the Pennsylvania-based U.S. Steel, citing national security concerns. Union members and Trump had repeatedly criticized the merger, as it would create one of the world's largest steel companies. Nevertheless, Nippon Steel has consistently emphasized its plans to invest in U.S. Steel, hoping to find a solution acceptable to all parties.

While specific details of the agreement were not shared during Friday's bilateral talks, Trump stated that he would meet with the head of Nippon Steel next week to "mediate and arbitrate" the deal. Notably, Trump mistakenly referred to Nippon Steel as "Nissan" during his remarks. Facing political pressure, the Biden administration blocked the acquisition, emphasizing the importance of domestic ownership and production.

Prime Minister Shigeru Ishiba's visit to Washington aimed to solidify relations with the United States, a key foreign partner. Both U.S. and Japanese officials stated that a primary goal of the visit was to establish a personal rapport with Trump. Trump cultivated a strong relationship with former Prime Minister Shinzo Abe during his first term. This visit marked the first visit to the White House by an Asian leader since Trump began his second term in January, and the second foreign leader visit after Israeli Prime Minister Benjamin Netanyahu's visit earlier this week.

“On television, he is very scary, but when I met him, he was very sincere and very powerful, with a very strong will,” Ishiba told reporters at a joint press conference on Friday. Japanese officials stated that Ishiba had made "every possible preparation" for his meeting with Trump, including seeking advice from Shinzo Abe's widow (who attended the inauguration as a guest of Melania Trump) and his predecessor, Fumio Kishida, to ensure a productive discussion.

Ishiba also emphasized Japan's role as a major economic partner of the United States, highlighting that Japan has been the largest foreign investor in the U.S. for five consecutive years. Among multinational corporations, Japanese companies are the largest job creators in 10 U.S. states and the second-largest in another six. In Kentucky alone, Japanese companies employ over 45,000 people, primarily in automotive equipment manufacturing, demonstrating their significant contribution to the American economy.

Earlier that day, Trump stated that while imposing tariffs on Japan remained a possibility, he believed the $68 billion trade deficit with Japan was solvable and "very easy" for Japan to address. "We have a very great relationship," he said. "I don't think we'll have any problem. They want to be fair too." When asked about the possibility of U.S. tariffs and retaliatory tariffs, Ishiba declined to provide details. "I cannot answer a hypothetical question," he said, drawing laughter from Trump and reporters in the room. "That is our official answer," he concluded, maintaining a diplomatic stance.