President Trump has ordered a fresh national security review of Nippon Steel's proposed acquisition of U.S. Steel. This move has led to a significant surge in U.S. Steel’s stock, highlighting renewed interest in the deal.

The proposed acquisition was first announced in December 2023, stirring political debates in the 2024 presidential campaign.

Trump's directive signifies a shift in the deal's dynamics. The Committee on Foreign Investment in the U.S. (CFIUS) has 45 days to assess national security risks, indicating the administration's eagerness to potentially approve the acquisition.

Both U.S. Steel and Nippon Steel have endorsed the review process, suggesting it could foster job creation and economic growth. Yet, unions express concerns over foreign ownership's risks to economic security.

Following Trump's announcement, U.S. Steel stock surged by 16%, reflecting investor optimism. However, the long-term effects depend on how Nippon Steel addresses security concerns while integrating its operations with U.S. Steel.

Union opposition highlights fears about job security under foreign control, while political divisions mirror national sentiments on trade. This acquisition reflects deeper issues regarding foreign investments in U.S. industries.

The CFIUS review will be critical in determining the fate of the acquisition. How the proposed measures address national security will influence future foreign investments in key U.S. industries.