ABOARD AIR FORCE ONE/TOKYO: U.S. President Donald Trump reaffirmed his opposition to a foreign takeover of U.S. Steel, casting renewed doubt over the proposed $15 billion acquisition by Japan's Nippon Steel.

Speaking to reporters aboard Air Force One over the weekend, Trump said he did not believe a foreign company should control the iconic American steelmaker. His comments echoed remarks from earlier in the week that sent U.S. Steel shares tumbling by 7%.

"I don't want to see U.S. Steel go to Japan," Trump said last week, prompting both companies to state they were continuing to work with his administration to "secure a significant investment."

The two leaders previously discussed the issue in February, according to Japanese Prime Minister Shigeru Ishiba. Addressing lawmakers this week, Ishiba said the distinction between investment and acquisition needed close scrutiny under U.S. law.

"The difference between acquisition and investment must be carefully examined in light of the U.S. law, but there must surely be a point where it (U.S. Steel) remains as an American company, and where Japanese interests can also be realized," Ishiba said during a parliament session in Tokyo.

The initial agreement for Nippon to acquire U.S. Steel, first announced in December 2023, has faced political and regulatory resistance from the outset.

Both Trump and former President Joe Biden opposed the deal during last year's election campaign, emphasizing the importance of keeping U.S. Steel under American ownership. The company is based in Pennsylvania, a key swing state in the presidential race.

In January 2025, Biden officially blocked the transaction on national security grounds. Nippon and U.S. Steel subsequently filed a lawsuit, arguing they had been denied a fair review process. They alleged Biden's public opposition had compromised the outcome, driven by electoral strategy rather than security considerations.