President Trump has ordered a new national security review of Nippon Steel’s proposed $14 billion acquisition of U.S. Steel, reviving a high-profile deal that had been blocked earlier this year by former President Joe Biden.
The White House announced Monday that the Committee on Foreign Investment in the United States (CFIUS) will reassess the transaction to determine whether it poses a threat to national security. The move grants the administration the flexibility to negotiate terms that could enable the completion of the deal, which would bring the storied American steelmaker under Japanese ownership.
“This review will help determine whether further action is appropriate,” a White House spokesperson said. “The President is committed to ensuring U.S. national security while fostering economic competitiveness.”
Nippon Steel welcomed the decision, stating that “an objective, fact-based review of our proposed partnership with U.S. Steel will show that it strengthens American economic and national security so that U.S. Steel remains a proud American company.”
The acquisition, announced in late 2023, would consolidate Nippon Steel’s position as one of the world’s largest steel producers. It has faced intense political scrutiny due to U.S. Steel’s historic role in American industrial development and its significance in domestic supply chains.
In January 2025, the Biden administration blocked the merger after an initial CFIUS review raised national security concerns. Nippon Steel and U.S. Steel have since filed a legal challenge in federal appeals court, arguing that the decision lacked a fair and transparent process.
The renewed review signals a potential shift in the U.S. approach to foreign investment under the Trump administration. While past policy has often scrutinized foreign acquisitions of critical infrastructure, particularly by Chinese firms, the revival of the Nippon deal suggests a more flexible posture toward allies.
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