Japan’s Nippon Steel has dramatically raised its investment commitment in US Steel to $11 billion in a bold effort to win over former President Donald Trump and secure approval for a politically sensitive acquisition. The move, reported by the Financial Times, marks a significant escalation in Nippon’s campaign to rescue a deal that has faced strong opposition from both major U.S. political parties.
The new pledge — four times higher than Nippon’s previously stated $2.7 billion investment — includes $1 billion allocated for building a new steel mill, with an additional $3 billion to be spent after 2028. According to people familiar with the matter, the Japanese company is also promising to create tens of thousands of jobs over the coming years as part of its commitment to bolster U.S. manufacturing.
Although the total enterprise value of the deal remains unchanged at $14.9 billion, Nippon Steel’s latest offer is seen as a strategic play to sway political sentiment. Trump, who earlier claimed Nippon had walked away from the deal, recently told Japanese Prime Minister Shigeru Ishiba that the company would instead “invest heavily” in US Steel.
The transaction, initially announced in late 2023, has been mired in controversy, with President Joe Biden, Trump, and then–Vice President Kamala Harris voicing concerns or outright opposition during their respective campaign appearances. National security concerns, union resistance — particularly from the influential United Steelworkers — and ongoing trade tensions have all complicated the deal’s progress.
As reported by the Financial Times, Trump ordered a new national security review by the Committee on Foreign Investment in the United States (CFIUS), which is expected to reach a decision this week. A previous review under Biden failed to reach consensus, leading to the current political and legal impasse.
If the deal fails to close by the mid-June deadline, Nippon faces a $565 million break fee. In the meantime, both Nippon and US Steel have paused litigation against the Biden administration, after alleging in court filings that the White House blocked the deal for political reasons.
Behind the scenes, Nippon Steel’s vice-chair Takahiro Mori has made multiple trips to the U.S., visiting key states like Pennsylvania, Indiana, and Washington to lobby support and negotiate alternative deal structures. Some of these proposals reportedly involved increasing Nippon’s equity stake in US Steel gradually, tied to future investments — though such plans have yet to gain traction.
Analysts see the increased investment as a calculated move to appeal directly to Trump’s economic priorities. “Multinational companies now understand that the formula for getting Trump’s favour is to float big numbers,” said Todd Tucker, director of industrial policy and trade at the Roosevelt Institute, speaking to the Financial Times.
Still, hurdles remain. Tucker noted that the enforceability of Nippon’s investment commitments under existing steelworker labor contracts is a key sticking point. These agreements often contain strict schedules for facility-specific capital expenditures, making it harder for external promises to satisfy union concerns.
While US Steel and Nippon Steel declined to comment, the expanded investment package is widely interpreted as a last-ditch effort to gain political support and finalize the acquisition. Whether the strategy succeeds may ultimately depend on how persuasive Nippon’s economic promises are to the White House — and to Donald Trump, whose approval could prove decisive.
