Nippon Steel Shares Surge as Trump Revives U.S. Steel Takeover Review

Nippon Steel Corp (TYO:5401) saw its stock soar 9.2% to 2,995 yen on Tuesday, following a renewed push by former U.S. President Donald Trump to re-evaluate the company’s $15 billion acquisition of U.S. Steel (NYSE:X). The stock rally also aligned with a broader surge in Japanese markets, with the Nikkei 225 jumping as much as 6%.

Trump issued a directive Monday instructing the Committee on Foreign Investment in the U.S. (CFIUS) to reassess the proposed takeover, which was previously blocked by President Joe Biden over national security concerns. CFIUS now has 45 days to recommend whether U.S. Steel and Nippon Steel’s proposed mitigation measures are enough to address potential risks.

The Biden administration halted the deal in January, citing threats to America’s critical supply chains if U.S. Steel fell under foreign ownership. In response, both companies filed lawsuits challenging the decision. Although Trump had initially criticized the merger, he appeared more open to it after a February meeting with Japanese Prime Minister Shigeru Ishiba.

Nippon Steel and U.S. Steel have pledged to increase U.S. investments and allow the U.S. government veto power on key steelmaking decisions, aiming to ease security concerns and strengthen domestic production.

The renewed political interest in the deal sent U.S. Steel shares up 16% in overnight trading, signaling investor optimism about the transaction’s revival. The review could mark a turning point in a contentious acquisition that’s drawn scrutiny amid growing U.S.-China tensions and heightened focus on safeguarding industrial assets.

As the 45-day CFIUS deadline approaches, markets will closely watch for signs of regulatory approval that could reshape the future of American steelmaking under Japanese leadership.