On Monday, President Donald Trump took decisive action by directing a prominent national security panel to reevaluate Nippon Steel's bid for U.S. Steel. He emphasized the need for this reassessment to determine if any further action regarding the acquisition would be warranted, thereby reigniting hopes for the deal's approval.

Nippon Steel reacted positively to the news, expressing confidence in a comprehensive and unbiased review that would highlight how their partnership with U.S. Steel would bolster both American economic interests and national security. Meanwhile, U.S. Steel also conveyed enthusiasm about collaborating with President Trump and his administration to finalize what they deem a crucial investment.

Following the White House's announcement, U.S. Steel's share price surged by nearly 14%, an indication that investors interpreted the directive as a signal of potential clearance for the merger. This follows a previous blockage by former President Joe Biden, who cited national security concerns, which led the companies to file a lawsuit against the Committee on Foreign Investment in the United States (CFIUS), claiming the administration was biased in its decision-making process.

The lawsuit argued that Biden's public opposition to the merger during his re-election campaign influenced the committee's approach, aiming to appease the United Steelworkers union in Pennsylvania, where U.S. Steel is based. The Biden administration defended its stance, claiming that safeguarding national security and supply chains was paramount.

Recently, under the Trump administration, a motion was submitted to extend deadlines related to the ongoing lawsuit between U.S. Steel and Nippon Steel and the national security panel. This request seeks to grant additional time to conclude merger discussions, and late on Monday, both the Trump administration and the companies requested an appeals court to suspend ongoing litigation until June 5, allowing CFIUS to conduct its review, which they believe could effectively resolve the companies' grievances.