Trump Signals Positivity on Nippon Steel's US Steel Acquisition... Japanese Media Say Final Outcome Remains Unclear

by Kim Daehyun

Published 25 May.2025 16:48(KST)

Although President Donald Trump of the United States has expressed a positive stance regarding Nippon Steel's acquisition of the American steel company US Steel, there are responses in Japan suggesting that it remains unclear whether this means he has allowed Nippon Steel to make US Steel a wholly owned subsidiary as originally planned.

A citizen is passing in front of the Nippon Steel headquarters in Tokyo, Japan. Photo by AP

On May 25, the Yomiuri Shimbun reported that President Trump might approve the acquisition under conditional terms, such as limiting the ownership ratio, and noted that careful attention is needed until the deal is finalized. The Nihon Keizai Shimbun (Nikkei) also stated, "Whether the acquisition will ultimately go through depends on President Trump," and explained, "The Japanese government and Nippon Steel will check to ensure there is no risk of President Trump reverting to a negative stance."

According to NHK on the same day, Prime Minister Shigeru Ishiba told reporters, "We are not at a stage where we can speak in detail," and added, "We would like to wait for an official announcement from the US government." This is interpreted to mean that the Japanese government has not yet grasped the US government's precise position on Nippon Steel's plan to make US Steel a wholly owned subsidiary.

An executive at Nippon Steel also told Nikkei that while President Trump's post on the social media platform Truth Social was "taken as a positive message," they "cannot be reassured until what we have proposed is officially approved through the proper procedures." Nippon Steel previously issued a statement regarding President Trump's post, saying, "We sincerely respect President Trump's decision to approve the partnership with US Steel."

On May 23 (local time), President Trump stated on Truth Social, "After much consideration and negotiation, US Steel will remain in America and keep its headquarters in the great city of Pittsburgh," adding, "There will be a planned partnership between US Steel and Nippon Steel, which will create at least 70,000 jobs and add $14 billion to the US economy."

However, there are calls to clarify what President Trump specifically meant by describing this deal as a "planned partnership." President Trump has previously indicated that he would be positive about investment rather than a full acquisition. In relation to this, Nippon Steel is said to have made additional proposals, such as building a new steel plant in the US with an investment of up to $4 billion (about 5.5 trillion won), on the condition that the US government approves the acquisition.

Previously, on April 7, after President Trump ordered a review of former President Joe Biden's decision to block Nippon Steel's acquisition of US Steel, Nippon Steel made additional proposals to gain approval for the acquisition. However, the company maintained its position that US Steel should become a wholly owned subsidiary. In December 2023, Nippon Steel proposed to acquire US Steel for $15 billion, but opposition from the steelworkers' union and others led former President Biden to reject the deal.