WASHINGTON, D.C.: The Trump administration is seeking a delay in the legal battle between U.S. Steel and Nippon Steel over their blocked merger, signaling ongoing negotiations that could revive the deal.

A recent court filing from the Department of Justice (DOJ) requests a 21-day extension for briefing deadlines and a rescheduled hearing in the lawsuit against the Committee on Foreign Investment in the United States (CFIUS), which had previously recommended rejecting the merger on national security grounds.

The move is the most unambiguous indication yet that President Donald Trump may be open to allowing the deal—initially scuttled by his predecessor, Joe Biden—to proceed in some form.

"The requested extension will allow the government to complete its ongoing discussions with the parties regarding the U.S. Steel and Nippon Steel transaction with the goal of eliminating the need for this Court's resolution of the litigation on the merits," the DOJ stated in its filing.

In January, U.S. Steel and Nippon Steel sued CFIUS, arguing that the committee's decision to block their merger was politically motivated. They alleged that Biden interfered in the review process to gain favor with the United Steelworkers (USW) union in Pennsylvania, a crucial swing state where U.S. Steel is headquartered, ahead of the 2024 election.

Trump has previously suggested he would not oppose Nippon Steel taking a minority stake in U.S. Steel, a significant shift from Biden's position. Following Trump's comments, a Japanese government spokesperson confirmed that Nippon Steel was exploring a modified approach to the deal. The company also sought a meeting between Vice Chairman Takahiro Mori and U.S. Commerce Secretary Howard Lutnick, but no revised agreement has been finalized.

U.S. Steel and Nippon Steel have agreed to the DOJ's motion to delay proceedings, but the court must still approve the request.