President Donald Trump on Friday suggested that Nippon Steel would no longer buy U.S. Steel as planned, but the Japanese company would instead invest in the symbolically important American business.

The U.S. president mistakenly referred to Nippon Steel as “Nissan,” the Japanese automaker. But it's Nippon Steel's bid that generated controversy as both Trump and his predecessor in the White House, Joe Biden, vowed to block the merger.

Nippon Steel “is going to be doing something very exciting about U.S. Steel,” Trump said at a news conference with Japanese Prime Minister Shigeru Ishiba. “They’ll be looking at an investment rather than a purchase.”

It was unclear what the details of the investment would be, but Trump said he would meet with the head of Nippon Steel next week and he would be involved “to mediate and arbitrate.”

Nippon Steel in December 2023 made what was a nearly $15 billion bid to buy U.S. Steel, creating a sudden political issue in the 2024 presidential election as the Pittsburgh-headquartered steelmaker was key to the identity of the political swing state of Pennsylvania. Biden agreed with the United Steelworkers, the labor union, in seeking to block the merger, while Trump as a candidate said outright he opposed the purchase.

In December, the Committee on Foreign Investment in the United States, known as CFIUS, sent its long-awaited report on national security concerns about the merger to Biden.

But the government panel failed to reach a consensus as to whether there were national security issues. The Biden administration extended a deadline for Nippon Steel to abandon the deal, essentially giving Trump the choice on what step to take next.

Ishiba described the investment as mutually beneficial and said Japanese technology would be provided to U.S. Steel mills.

Ishiba, who was making a whirlwind trip to Washington to get face time with Trump, said he understands that Trump’s goal is mutually beneficial trade policy.

Ishiba noted Japanese companies have held the top spot for cumulative foreign direct investment in the U.S. over the last five years. He added that Japan was looking to invest more in the United States.

Ishiba did plenty of legwork as he prepared for the Oval Office meeting.

He met this week with SoftBank CEO Masayoshi Son and OpenAI CEO Sam Altman, two executives Trump recently hosted at the White House. He sought advice from his immediate predecessor, Fumio Kishida.

Ishiba even called on the widow of Shinzo Abe, the Japanese prime minister with whom Trump bonded over rounds of golf during his first term.

“I would like to focus on building a personal relationship of trust between the two of us,” Ishiba told reporters before heading to Washington.

It’s a tall order for Ishiba to replicate the president’s relationship with Abe, who resigned as prime minister in 2020 and was assassinated by a gunman as he delivered a campaign speech in 2022. Nevertheless, Ishiba is making it a priority to connect with Trump.

Ishiba, who took office in October, is just the second world leader to visit the White House during Trump’s new term. Israeli Prime Minister Benjamin Netanyahu this week was the first hosted by Trump.

Ishiba arrived Thursday evening for his roughly 24-hour visit to Washington.

The quick trip was essential for Ishiba as he looks to ensure that the U.S. and Japan stay on solid footing with the return of Trump and his “America First” worldview. Both countries have been challenged by China’s growing economic and military assertiveness in the Pacific and concerns about a nuclear-armed North Korea.

“I think Prime Minister Ishiba certainly sees this is an important and critical opportunity for him to reestablish what were exceptional bonds between President Trump and Japan in the first Trump administration,” said Sen. Bill Hagerty, a Tennessee Republican who served as Trump’s ambassador to Japan during his first administration.

Abe was among the few world leaders who developed a bond with Trump during his first term. Trump said Abe’s July 2022 killing was a difficult moment for him.

Trump and Abe built their rapport over rounds of golf and dinners with their wives at the president’s Palm Beach, Florida, resort, Mar-a-Lago. During Trump’s 2019 state visit to Japan, Abe took Trump to a sumo wrestling match and arranged for him to be the first leader to meet with Japan’s newly enthroned emperor.

“Shinzo was a great friend of mine,” Trump said. “I couldn’t have felt worse when that happened to him at a horrible event. But he also was a friend of yours, and he had tremendous respect for you.”

Trump also said he wants to slash the U.S. trade deficit with Japan.

Trump added that he isn’t taking the possibility of levying tariffs against Japan off the table, but believes that the issue can be resolved without taking punitive action. The United States has a $68 billion trade deficit with Japan.

“I think it will be very easy for Japan,” Trump said at start of his Oval Office meeting with Ishiba. “We have a fantastic relationship. I don’t think we’ll have any problem. They want fairness also.”