TOKYO, May 9 (Reuters) - Nippon Steel ( NISTF ) on Friday

forecast a 43% decline in net profit for the current fiscal year

amid a deteriorating business environment and increased tariffs

in the U.S., where it said authorities are still reviewing its

bid to buy U.S. Steel.

Japan's biggest steelmaker estimated profit for the year

through March at over 200 billion yen ($1.4 billion).

That compared to the year earlier' s 350.2 billion yen which

was 36% down on year though still above the 334.3 billion yen

average of analyst estimates compiled by LSEG.

"The trend of the (U.S.) tariff policy ... is currently

unforeseeable and its indirect impact on Nippon Steel ( NISTF ) ... may be

enormous," the company said in an earnings release.

However, direct impact is likely to be limited as exports to

the U.S. are hard-to-substitute small-volume products, it said.

Nippon Steel's ( NISTF ) $15 billion bid for U.S. Steel, rejected by

former U.S. President Joe Biden, is under review.

On Friday Nippon Steel said the parties "are taking all

necessary steps to ensure that the transaction closes" though

there can be no guarantee it will.

U.S. President Donald Trump, who took office for the second

time on January 20, began his term saying he "wouldn't mind" if

Nippon Steel ( NISTF ) bought a minority stake in U.S. Steel. Such a

scenario would require an overhaul of the deal structure.

In March, Trump directed the Committee on Foreign Investment

in the United States (CFIUS), which reviews foreign investment

for national security risk, to look again at the bid to

determine whether "further action" would be appropriate.

Nippon Steel ( NISTF ) is "fully cooperating with the review process

to obtain approvals," the Japanese steelmaker said on Friday.

Vice Chairman Takahiro Mori, speaking to reporters on

Friday, said he expects CFIUS to make a recommendation on the

deal to Trump by May 21 and the president to decide whether to

approve by June 5.

($1 = 145.3300 yen)