Trump Calls for Renewed Review of Nippon Steel's Bid for U.S. Steel Amidst Legal Challenges

President Trump has directed a national security review of Nippon Steel's acquisition bid for U.S. Steel. The directive raised U.S. Steel shares by 14%. The review, a response to earlier opposition by President Biden, aims to assess the deal's impact on economic and national security.

President Donald Trump on Monday instructed a powerful U.S. national security panel to revisit Nippon Steel's bid for U.S. Steel, seeking to determine whether further action is warranted. Investors interpreted this as a positive step, causing U.S. Steel's stock to rise by nearly 14% as hopes increase for an eventual approval.

Nippon Steel expressed satisfaction with the directive, maintaining confidence that a thorough review of its partnership would underscore benefits to both U.S. economic and national security. Meanwhile, U.S. Steel welcomes continued engagement with the Trump administration to finalize the critical investment.

The directive follows previous efforts by former President Joe Biden to block the merger on national security grounds, leading to legal action by the firms. The Biden administration upheld the review as a safeguard for security and supply chains. However, both the Trump administration and companies are currently seeking to pause litigation until June while a renewed review by CFIUS unfolds.

(With inputs from agencies.)