On Friday, President Donald Trump hinted that Nippon Steel might not go through with its planned purchase of U.S. Steel. Instead, the Japanese company would invest in the historically significant American business.

The U.S. president mistakenly called Nippon Steel "Nissan," which is a Japanese car company. However, the real issue is Nippon Steel's merger bid, which both Trump and Biden have promised to block. Nippon Steel "is going to be doing something very exciting about U.S. Steel," Trump said at a news conference with Japanese Prime Minister Shigeru Ishiba. "They'll be looking at an investment rather than a purchase."

The specifics of the investment were not clear, but Trump mentioned that he would meet with the head of Nippon Steel next week and would play a role in mediating and arbitrating. Ishiba stated that the investment would benefit both sides and that Japanese technology would be shared with U.S. Steel mills. In December 2023, Nippon Steel made a nearly $15 billion offer to buy U.S. Steel. This deal quickly became a political issue in the 2024 presidential election because U.S. Steel, based in Pittsburgh, is an important part of Pennsylvania’s identity—a key swing state. President Biden sided with the United Steelworkers union in trying to block the merger, while Trump, as a candidate, clearly stated his opposition to the purchase.

In December, the Committee on Foreign Investment in the United States (CFIUS) submitted its long-awaited report to President Biden regarding national security concerns about the merger. However, the panel could not agree on whether the deal posed a security risk. As a result, the Biden administration extended the deadline for Nippon Steel to withdraw from the deal, effectively leaving the decision to former President Trump on what to do next.