*

Trump on Monday had directed fresh look at Nippon Steel ( NISTF )

bid

*

Nippon Steel's ( NISTF ) made a $14 billion bid for U.S. Steel in

2023

*

Biden rejected the deal in January

(Adds after-hours trading in paragraph 3, comment from White

House officials in paragraph 8)

By Andrea Shalal and Chris Sanders

WASHINGTON, April 9 (Reuters) - U.S. President Donald

Trump said on Wednesday he does not want U.S. Steel Corp

to go to Japan, suggesting he does not support Nippon Steel's ( NISTF )

$14 billion bid for the American steel producer.

The comment appeared to contradict recent actions by the

Trump administration. On Monday, Trump directed a national

security panel to take a fresh look at Nippon Steel's ( NISTF ) 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.

Following Trump's latest comment, shares of U.S. Steel fell

as much as 14% to $38.57 in after hours trading before

recovering slightly. They remained well below Nippon Steel's ( NISTF ) $55

a 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.

U.S. Steel and Nippon Steel ( NISTF ) did not immediately respond to

requests for comment.

The comment shows the future of the deal remains uncertain

given sudden changes in thinking at the White House.

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.

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.