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Trump Reviews CFIUS Split Decision on Nippon Steel’s $14B U.S. Steel Deal

Trump Reviews CFIUS Split Decision on Nippon Steel’s $14B U.S. Steel Deal. Source: karinckarinc, CC BY 2.0, via Wikimedia Commons

President Donald Trump is reviewing a divided recommendation from the Committee on Foreign Investment in the United States (CFIUS) regarding Nippon Steel’s $14 billion bid for U.S. Steel. While the panel was not unanimous, a majority of CFIUS members believe any national security risks can be mitigated, according to a White House official who spoke anonymously.

The CFIUS recommendation comes in response to an executive order signed by Trump in April, directing the committee to assess whether the Japanese steelmaker’s proposed merger posed national security threats and whether the companies' proposed mitigation measures were sufficient.

Nippon Steel recently boosted its proposed investment to $14 billion, including a $4 billion plan for a new steel mill, in a final effort to secure U.S. approval. The White House confirmed that Trump will review the findings of each agency involved and has up to 15 days to make a decision, although delays are possible.

The review follows a January decision by former President Joe Biden to block the deal on national security grounds. Nippon Steel and U.S. Steel have since filed suit, arguing they were denied a fair review. The Biden administration rejected the claim.

The latest CFIUS report includes statements from each participating agency, detailing their stance on the deal. Trump’s decision will determine whether Nippon Steel can proceed with the acquisition or if national security concerns will once again halt the transaction.

The merger has drawn significant attention given its geopolitical implications and potential to reshape the U.S. steel industry amid rising protectionist policies and growing concerns over foreign ownership of critical infrastructure.

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