Ishiba proposes Nippon Steel invest in U.S. Steel rather than acquire it

Prime Minister Shigeru Ishiba proposed modifying a plan for Nippon Steel Corp to acquire United States Steel Corp into an investment during his summit with U.S. President Donald Trump in Washington, a government source said Sunday.

The revised plan, which had been discussed in advance with Nippon Steel, involves making a significant investment in the struggling U.S. producer instead of seeking full ownership, according to the source.

Ishiba said on a TV program the same day that U.S. Steel would remain an American company regardless of how the plan proceeds.

Japan's largest steelmaker was originally planning to invest $2.7 billion in the U.S. company's facilities, but the revision will likely significantly increase the investment amount.

"There is a saying that steel is the nation," Ishiba, who held his first in-person summit with Trump on Friday, said, adding he believes the president is "worried" about a major U.S. firm being acquired by a Japanese rival.

Trump is expected to meet with Nippon Steel's executives at an early date.

Regarding other bilateral matters, Ishiba, who took office in October, said Trump did not urge Japan to increase its defense budget. Ishiba also said he told Trump that Tokyo "cannot accept negotiations that treat North Korea as a nuclear power."

Last month, Trump described North Korea as a "nuclear power," fueling speculation about a shift in his second administration's approach to Pyongyang. In his first term from 2017, he held face-to-face talks with North Korean leader Kim Jong Un three times.

Ishiba, meanwhile, said Trump, who returned to the White House in January, expressed a strong desire to visit Japan, adding the timing should be "the most appropriate" and that both governments will "coordinate thoroughly down the road."

Summarizing the summit by saying, "It turned out to be a good outcome thanks to the efforts of many people," Ishiba noted that he did not discuss with Trump whether the United States will impose tariffs on Japanese auto imports.

Asked about the possibility of the Trump administration placing Japan on the list of countries subject to additional tariffs in the future, Ishiba said, "I don't know." But he added, "One-sided exploitation cannot last long."

The international community has braced for Washington's shift to unilateralism and protectionism under Trump's "America First" doctrine. The Republican president, known for skepticism about multilateralism, agreed with Ishiba to aim for a "new golden age" of bilateral relations.

Nippon Steel's plan to take over U.S. Steel has drawn strong opposition from both Trump and his predecessor Joe Biden. Founded in 1901, U.S. Steel was once a symbol of American economic strength but has struggled to compete with foreign rivals.

Biden's blocking of the $14.1 billion deal in early January, citing national security concerns, prompted the two companies to file lawsuits to overturn his decision. Nippon Steel, the world's fourth-biggest producer, and U.S. Steel announced the plan in December 2023.