Nippon Steel clings to U.S. Steel takeover as Trump backs investment

Feb. 25 (UPI) -- Nippon Steel's top executive said Tuesday the Japanese company will stick with its proposed $14.1 billion takeover of U.S. Steel, despite President Donald Trump backing only its investment along with the possibility of tariffs.

Nippon Steel President Tadashi Imai's comments are his first about the proposed steel merger since Trump met with Japanese Prime Minister Shigeru Ishiba earlier this month.

"The starting point for our discussions with the U.S. government will be this merger agreement," Imai told reporters in Tokyo. "From there, we will discuss with the U.S. administration on how we can get President Trump to approve of the deal."

During his meeting with Prime Minister Ishiba at the White House on Feb. 7, Trump said his goal is for Nippon Steel to invest in U.S. Steel rather than to buy the American company.

"Nippon is going to be doing something very exciting about U.S. Steel. They will be looking at an investment rather than a purchase. U.S. Steel is a very important company to us," Trump told reporters earlier this month. "So they have agreed to invest heavily in U.S. Steel as opposed to own it and that sounds very exciting."

During their meeting, Ishiba also urged Trump not to place any additional tariffs on Japanese goods. Trump has imposed a 10% tariff on Chinese imports. Despite a one-month pause on 25% tariffs for Canada and Mexico, Trump said Monday tariffs on both countries "will go forward on time, on schedule" when the delay expires next week.

Last year, Nippon Steel reached a deal to purchase U.S. Steel despite bipartisan rejection of the plan. Trump also opposed the deal on the campaign trail and President Joe Biden blocked it. U.S. Steel is currently suing to keep the merger alive.

Trump has said he plans to meet with the head of Nippon Steel "to mediate and arbitrate." Japanese Trade Minister Yogi Muto also plans to visit the United States next month, and could discuss the U.S. Steel deal with U.S. officials, according to a report from newspaper Asahi.

On Tuesday, Imai said, "Nothing has been decided at this point" over when he will meet with President Trump, adding that U.S. Commerce Secretary Howard Lutnick will likely be the main contact for negotiations. "We are about to start talks."