Trump orders new review of Nippon Steel's bid for U.S. Steel

President Donald Trump is seeking a new review of Nippon Steel’s proposed purchase of U.S. Steel.

A memo issued Monday by the White House gives the Committee on Foreign Investment in the United States 45 days to review the nearly $15 billion deal and say “whether any measures proposed by the parties are sufficient to mitigate any national security risks.”

The panel, comprised of several federal department heads as well as intelligence and trade officials, failed to reach a consensus in December on whether the takeover by Japan’s largest steel maker posed a national security threat. That allowed then-President Joe Biden to block the deal in January.

The upcoming review will be done by an all-new group of Trump appointees.

Trump’s decision comes after a string of encouraging news for proponents of the deal.

While he campaigned throughout last year in opposition to the deal, claiming foreign ownership of U.S. Steel would hurt American manufacturing, Trump somewhat changed course in February and said he had reached an agreement with Nippon to instead invest in U.S. Steel. No details ever emerged.

Activist investor Ancora Holdings Group, which has embarked on a campaign to oust U.S. Steel CEO David Burritt and the company’s board of directors, also unexpectedly lent its support to the sale Monday after previously calling it “dead.”

Nippon Steel also reportedly upped its pledged investments in U.S. Steel’s union-run facilities, including the Mon Valley Works, from $2.7 billion to $7 billion. The Breathe Project, an environmental group based in Pittsburgh, criticized Nippon on Monday for its lack of specificity in how these promises may reduce harmful emissions.

Laura Hodges, a steel industry analyst with MEPS International, said she wasn’t “necessarily extremely surprised” by the executive order, adding “this is the most positive sign (the deal) will go through in a while.”

Monday’s announcement sparked a 16% jump in U.S. Steel’s stock price, even as the wider market continued to tumble in response to Trump’s tariffs. Few developments throughout Nippon’s more than yearlong attempt to buy U.S. Steel have proved so encouraging to investors.

Still, approval is far from guaranteed.

The committee could find evidence of national security risks that Nippon cannot mitigate. It also could return another split decision, leaving the call up to Trump, whose stances can be tough to predict even weeks into the future.

U.S. Steel thanked Trump is a statement Monday.

“Today’s decision by President Trump is pivotal as we work to deliver on new and historic levels of investment in American steelmaking,” the company said. “We look forward to continuing to work closely with President Trump and his administration to finalize this significant and important investment, which will preserve existing jobs, create new jobs, enhance national security and secure a bright future for American manufacturing.”

Nippon did not immediately return a request for comment.

The companies had filed a lawsuit challenging Biden’s block, arguing it was politically motivated and asking for a second national security review. Trump’s order coincides with a deadline for the U.S. government to respond to the lawsuit.

“I don’t think either party would have been truly confident about the outcome of the litigation and that creates incentives to find another path,” said Stephen Heifetz, an attorney at Wilson Sonsini in Washington, specializing in national security.

A separate lawsuit alleged Cleveland-Cliffs CEO Lourenco Goncalves and United Steelworkers union President David McCall colluded to tank Nippon’s offer. Cleveland-Cliffs unsuccessfully bid on U.S. Steel in 2023, and Goncalves has often reiterated his interest in taking over his rival in Pittsburgh.

The Associated Press contributed to this story.