WASHINGTON, D.C.: President Donald Trump suggested that Japanese steel giant Nippon Steel would not proceed with its planned acquisition of U.S. Steel but would instead invest in the American company.

Speaking at a press conference alongside Japanese Prime Minister Shigeru Ishiba, Trump mistakenly referred to Nippon Steel as "Nissan," the Japanese automaker, but emphasized that an alternative arrangement was in the works.

"Nippon Steel is going to be doing something very exciting about U.S. Steel," Trump said. "They'll be looking at an investment rather than a purchase."

The specifics of the investment were not immediately clear, but Trump indicated he would meet with Nippon Steel executives next week to discuss details and act as a mediator.

Ishiba described the arrangement as mutually beneficial, noting that Japanese technology would be provided to enhance U.S. Steel's mills.

Nippon Steel initially announced its nearly US$15 billion bid to acquire U.S. Steel in December 2023, sparking political debate during the 2024 presidential campaign. The Pittsburgh-based steelmaker holds symbolic significance in Pennsylvania, a crucial swing state. The proposed sale faced resistance from both Trump and former President Joe Biden, as well as the United Steelworkers union, which opposed the merger.

In December, the Committee on Foreign Investment in the United States (CFIUS) submitted a report to the Biden administration regarding potential national security concerns associated with the acquisition. However, the panel did not reach a consensus on whether the deal posed a threat to U.S. interests.

The Biden administration extended a deadline for Nippon Steel to withdraw from the deal, effectively leaving Trump to make the final decision.