Photo/Illutration The Nippon Steel Corp. logo (Asahi Shimbun file photo)

WASHINGTON--Donald Trump's latest shift on Nippon Steel's $14 billion bid for U.S. Steel sent shares of the 124-year-old American company down 7% on Thursday, after Trump said a day earlier that he does not want the steel producer to "go to Japan."

Trump's comments were the latest in a series of confusing pronouncements in the long-running saga over Nippon's pursuit of U.S. Steel. Trump opposed the deal during the 2024 campaign, but has warmed to it since. On Monday, he directed a national security panel to take a fresh look at the all-cash bid for U.S. Steel to help determine if "further action" is appropriate, raising hopes the deal could gain an elusive green light.

Since returning to the White House, Trump's on-again, off-again approach to commerce has spooked business executives, who say the uncertainty has has clogged dealmaking and business activity, with the ramifications most evident in his decision to slap heavy tariffs on just about every major world economy, only to reverse course in the face of a market selloff and public pressure on Wednesday.

U.S. Steel shares lost $3.12 to $42.02 on Thursday, well below Nippon Steel's $55-per-share offer price.

"We don't want to see it go to Japan," Trump said, adding "We love Japan."

"We don't want it to go to Japan or any other place, and we're working with them," Trump said.

White House officials gave no details about Trump's comments or whether they contradicted Monday's action. "Everything's always on the table with the president," one official said.

U.S. Steel and Nippon Steel did not respond to requests for comment.

Outgoing President Joe Biden had blocked the merger in January on national security grounds.

After Biden's decision, the two companies sued the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign investments for national security risks, alleging Biden had prejudiced the committee's decision and violated the companies' right to a fair review.

The deal was announced in December 2023 and almost immediately ran into opposition across the political spectrum ahead of the November 5 U.S. presidential election. Both then-candidates Trump and Biden vowed to block the purchase of the storied American company.

The companies had argued that Biden opposed the deal when he was running for reelection to win support from the United Steelworkers union in the battleground state of Pennsylvania, where U.S. Steel is headquartered. The Biden administration had defended the review as essential to protecting security, infrastructure, and supply chains.

Last month, the Trump administration filed a motion to extend two deadlines in the lawsuit to give the government more time to wrap up merger talks with the firms.

Late on Monday, the Trump administration and the companies asked an appeals court to pause their litigation until June 5 while CFIUS reviews the tie-up again, noting that the process has the potential to "fully resolve" the companies' claims.

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