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The $15 billion takeover of U.S. Steel (NYSE:X) by Japan's Nippon Steel just hit a brick wallagain. This time, Donald Trump doubled down, telling reporters aboard Air Force One that no foreign company should control U.S. Steel. That soundbite wasn't just political theater, it poured gasoline on an already flammable deal. The two companies tried to spin a more diplomatic angle, saying they're working with the Trump administration to secure a significant investment. But let's be honestthis is no longer just a business transaction. It's an election-year landmine.
Japan's Prime Minister Shigeru Ishiba tried to cool tensions, hinting at a middle ground in Tokyo's parliamentmaybe the U.S. keeps the flag on the door while Japanese capital gets a seat at the table. Sounds nice in theory, but good luck selling that in Pennsylvania, where U.S. Steel is headquartered and where both Trump and Biden are fighting tooth and nail for votes. The steel mill isn't just a factoryit's a political football. And right now, both quarterbacks are running the same play: keep U.S. Steel American.
This deal's been in trouble since day one. Announced in December 2023, it quickly ran into resistance from both sides of the aisle. Biden officially blocked it in January on national security grounds. Then came the lawsuitsNippon and U.S. Steel claiming the review process was rigged by political posturing. Now Trump's back in the mix, echoing Biden's stance, and effectively nuking what was left of the deal's momentum. The message to global investors? Strategic U.S. assets are off the table in 2025at least until the election dust settles.
This article first appeared on GuruFocus.