Trump Breathes New Life Into US Steel Being Acquired By Japanese Nippon Steel

Image Credit, Ant Rozetsky

In a move that underscores the high-stakes nature of global trade, Japan recently committed to significantly increasing its imports of liquefied natural gas (LNG) from the United States. This agreement, finalized during Prime Minister Fumio Kishida’s visit to the White House, was no ordinary energy deal. It was a calculated maneuver tied to a much larger economic negotiation—one that could see the long-blocked acquisition of U.S. Steel by Nippon Steel finally move forward under President Trump’s administration.

To fully understand the implications of this trade shift, it’s necessary to revisit the events surrounding the steel industry’s last major shakeup. For years, U.S. Steel has struggled with declining revenues, aging infrastructure, and mounting competition. A sale to Japan’s largest steelmaker had the potential to inject much-needed capital into the company, securing jobs and revitalizing production. The deal, worth nearly $15 billion, had the backing of shareholders and would have positioned the combined entity as one of the world’s dominant steel producers.

However, the Biden administration intervened, blocking the acquisition on the grounds of national security concerns and pressure from labor unions. The decision left U.S. Steel in a precarious position, with no alternative buyer willing to invest at the same level. Without a solution, the company faced the real possibility of further decline, if not outright collapse, within a few years.

Fast-forward to today, and Japan’s move to increase LNG imports from the U.S. suggests something far more strategic than a routine energy agreement. While Japan has multiple energy partners, including Australia and Qatar, it chose to significantly boost purchases from the United States. This wasn’t a coincidence. It was a calculated decision—one that signaled an expectation of reciprocity. Japan secures long-term energy stability, but in return, the expectation is clear: the steel acquisition should finally be approved.

With Trump now in office, the likelihood of that approval has dramatically increased. Unlike his predecessor, he has shown a strong preference for transactional diplomacy, where major trade deals are leveraged to maximize economic gain. Allowing the sale to go through would not only be a win for Japan but also a strategic move for the U.S. economy. Revitalizing steel production with foreign investment ensures jobs remain on American soil while modernizing facilities that would otherwise struggle to compete globally.

The impact of this decision would be felt far beyond the steel industry. A merger would create one of the largest steel manufacturers in the world, giving it a competitive edge against Chinese and European rivals. It would also reinforce economic ties between the U.S. and Japan, strengthening an alliance that plays a crucial role in countering China’s growing influence in global markets.

This is the kind of high-level dealmaking that defines Trump’s presidency. Energy security, industrial policy, and geopolitical strategy are all interwoven in a single move. The LNG deal was never just about natural gas. It was a step in a larger negotiation—one that is now on the verge of playing out exactly as expected.

Within weeks, if not days, an official decision on the steel acquisition is likely to be announced. Japan made its move, and now Washington is expected to reciprocate. The pieces were set long before this latest trade announcement, and in a game where nothing happens by accident, this was always the endgame.