US President Donald Trump stated on Friday that Japan's Nippon Steel plans to make a significant investment in US Steel, but will cease efforts to acquire controlling interest in the struggling company.
Trump said, "They'll be looking at an investment rather than a purchase," apparently referring to the Japanese automobile company Nissan.
Spokespeople from Nippon Steel and US Steel did not immediately respond to a request for comment.
The statement represents a change in tone for Trump, who had strongly denounced Nippon's $14.9 billion acquisition bid during his 2024 presidential election campaign.
Former US President Joe Biden vetoed the deal just before he stepped down last month on the grounds of national security, leading two companies to file a joint lawsuit and prompting criticism from Japanese Prime Minister Shigeru Ishiba.
The suit, filed on January 6, claimed that President Biden obstructed the deal between Nippon Steel and US Steel "for purely political reasons" to gain support from workers' unions.
In response, US authorities announced they have prolonged the timeframe for the Japanese company to give up its acquisition of US Steel until June 18, extending an initial 30-day deadline.
President Trump mentioned that his administration would consider allowing Nippon Steel's investment in US Steel as long as it doesn't take control of the US steel company.
"Our concerns about Nippon Steel's ongoing interest in U.S. Steel remain unchanged," United Steelworkers International President David McCall stated ( sic: as) in a statement.
"Nippon has consistently demonstrated a pattern of unfair trade practices, repeatedly dumping its products into our markets," he said, noting that the US steelworkers' union had not been in communication with either Nippon or the US administration regarding the proposed investment.
"While we await details of the proposed investment, we advise President Trump to ensure the long-term sustainability of the domestic steel industry by exploring alternative American solutions," he added.