Trump Approves U.S. Steel–Nippon Merger Following National Security Agreement

Washington, D.C. — President Donald Trump has issued an executive order approving the merger between U.S. Steel and Japan’s Nippon Steel after both companies signed a national security agreement with the U.S. government.

The agreement grants the U.S. a "golden share," providing the government with specific oversight rights related to governance, domestic production, and trade. While the exact powers attached to the golden share have not been detailed, both companies stated that all regulatory approvals have now been secured, and the deal will be finalized promptly.

National Security Commitments

Under the agreement, Nippon Steel has committed to investing $11 billion in the United States by 2028. This includes an initial phase of development on a greenfield project that will be completed after that year.

Additional provisions of the agreement include:

• Maintaining U.S. Steel’s blast furnaces at full operational capacity for at least ten years

• A guarantee of no layoffs or outsourcing

• A $5,000 worker bonus following the finalization of the deal

According to Pennsylvania Senator Dave McCormick, the golden share will provide the government influence over several board seats. President Trump, during a speech to steelworkers in Pennsylvania, said the share gives the president "total control," while describing the transaction as a partnership.

Shift in Position

The deal marks a sharp turn in Trump’s earlier stance. During the 2024 election campaign, he opposed the sale of U.S. Steel to a foreign company, echoing widespread concerns about national security and industrial sovereignty.

Former President Joe Biden had blocked the transaction in December 2024, citing national security risks despite Japan’s status as a U.S. ally. After returning to office in 2025, Trump ordered a new review of the deal in April, which ultimately led to his approval after the new security provisions were established.

During a visit to U.S. Steel’s Irvin Works facility on May 30, Trump received a ceremonial gold helmet and assured workers that the company would remain under U.S. control.

Investor Uncertainty

Despite Trump's assurances, an April 8 filing with the Securities and Exchange Commission confirmed that U.S. Steel would become a wholly owned subsidiary of Nippon North America. The president’s repeated references to the deal as a “partnership” rather than a “merger” have caused confusion among investors and union leaders.

The administration emphasized that the deal would not lead to job losses or production outsourcing. Trump also announced an increase in steel tariffs, doubling them to 50 percent effective June 4, to further protect domestic industry under the new arrangement.