Trump, Once Opposed to Foreign Sale, Suddenly Changes Stance
Highlights Job Creation Potential
Nippon Steel Insists on 100% Wholly Owned Subsidiary for Acquisition
Former U.S. President Donald Trump has expressed a positive stance regarding Nippon Steel's bid to acquire U.S. Steel, but Bloomberg News reported on May 25 (local time) that it remains unclear whether he will grant formal approval. Trump has insisted that even if U.S. Steel is sold, control must remain with the United States, and attention is now focused on whether Nippon Steel, which has proposed acquiring U.S. Steel as a wholly owned subsidiary, will accept this condition.
On this day, speaking to reporters at Morristown Airport in New Jersey, Trump said, "If the United States does not have control, I will not approve such a deal," adding, "This is an investment, and it could be partial ownership, but the United States will have control." This is interpreted as drawing a line against the complete subsidiary structure that the Japanese side had hoped for.
Previously, on May 23, Trump shifted his position from opposing Nippon Steel's acquisition of U.S. Steel to highlighting its positive aspects. On his social media platform, Truth Social, he referred to the "planned partnership" between Nippon Steel and U.S. Steel, claiming that the collaboration would create up to 70,000 jobs in the United States and contribute $14 billion (about 19 trillion won) to the U.S. economy. This figure is about five times the current number of U.S. Steel employees in the United States.
Japanese media have explained that Trump's remarks signal approval of Nippon Steel's purchase of U.S. Steel. However, Trump has not clarified how much of U.S. Steel's shares he would allow to be sold.
Bloomberg News commented, "It is still unclear whether Trump's latest comments represent a shift in his position or are simply a political message."
Experts are taking a cautious view. Shoji Hirakawa, chief global strategist at Tokai Tokyo Intelligence Lab, said, "Because the situation can change rapidly depending on Trump's statements, it is difficult to take this one comment as confirmation that the acquisition will be approved."
The deal can only be finalized if Trump makes the final decision to approve it. While he has previously shown a positive stance toward Japanese investment in the United States, in December 2024 he stated, "I oppose U.S. Steel being sold to a foreign company."
This position aligns with that of former President Joe Biden, who in January officially rejected the acquisition based on a review by the Committee on Foreign Investment in the United States (CFIUS). Nippon Steel signed a $14.9 billion (22 trillion won) acquisition agreement for U.S. Steel in December 2023. However, Nippon Steel has stated that unless the acquisition is structured as a 100% wholly owned subsidiary, it will be difficult to confirm the deal based on additional investment.
Meanwhile, the United States and Japan are currently holding a third round of negotiations regarding steel tariffs. Ryosei Akazawa, Japan's chief trade negotiator, met last week in Washington with U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative (USTR) Jamison Greer. Prior to this, Trump discussed related matters in a phone call with Japanese Prime Minister Shigeru Ishiba.
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