WASHINGTON, April 10 (Reuters) - U.S. Steel and Nippon

Steel ( NISTF ) are working closely with the Trump administration

"to secure a significant investment," U.S. Steel said on

Thursday, after remarks from President Donald Trump dimmed hopes

for a greenlight of the companies' long-sought tie-up.

Trump said on Wednesday he did not want to see U.S. Steel

"go to Japan," sending its shares down 7% amid fears his

comments signalled renewed reservations about Nippon's $14

billion bid for the 124-year-old American firm.

U.S. Steel's statement suggested the company remained

positive about the deal. The White House did not immediately

respond to requests for comment. Nippon Steel ( NISTF ) declined comment.

The deal, announced in December 2023, has faced headwinds

from the start. Both former President Joe Biden and Trump last

year asserted that U.S. Steel should remain American-owned as

they sought to win over voters in the swing state of

Pennsylvania, where the company is headquartered, during a hotly

contested election.

In January 2025, Biden blocked the transaction on national

security grounds. But the parties quickly sued, alleging they

were denied a fair national security review, because Biden had

prejudiced the process via his public opposition to the deal in

a bid to win reelection.

Trump, who took office for the second time on January 20,

began his term noting that he "wouldn't mind" if Nippon Steel ( NISTF )

took a minority stake in U.S. Steel, implying he would seek a

dramatic overhaul of the deal structure.

But his government's recent actions boosted hopes for

approval of a full takeover.

On Monday, Trump directed the Committee on Foreign

Investment in the United States, which reviews foreign

investments for national security risks, to take a fresh look at

the all-cash bid for U.S. Steel to help determine if "further

action" would be appropriate.

The same day, his 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.