President Donald Trump signed an executive order on June 13 clearing the way for Nippon Steel’s $14.9 billion takeover of U.S. Steel, reversing a national-security-based block by his predecessor, President Biden .
Key Deal Terms & Conditions
Golden share & national-security agreement:- The approval is contingent on a National Security Agreement giving the U.S. government veto power via a “golden share” in key decisions .
- $11 billion investment by 2028:
- Nippon Steel will invest at least $11 billion into U.S. operations by 2028, including new infrastructure and upgrading existing plants .
- U.S. Steel remains rooted:
- Headquarters will stay in Pittsburgh, with an American CEO and majority-U.S. board seats maintained .
Job impact:
- Companies estimate the partnership will directly and indirectly support over 100,000 American jobs .
Political & Market Context
Reversal of Biden-era policy:- President Biden blocked the deal in January 2025 on national security grounds; Trump’s order reverses that decision .
- Union and local reactions:
- United Steelworkers had warned against foreign control, but the inclusion of the golden share and investment pledges helped ease some opposition .
- Boost to US-Japan ties:
- The deal is being seen as a strategic partnership with Japan, enhancing trade and geopolitical relations .
- Market response:
- U.S. Steel shares initially dipped but later rebounded on investor optimism tied to the security deal .
What Comes Next?
The deal is now in its final stages, requiring formal execution of the national security agreement by the Treasury, Nippon Steel, and U.S. Steel. Full regulatory approvals have already been granted .
Industrial revitalization: Reinvigorates U.S. Steel with modern investments to compete globally.- National security precedent: Golden-share structure signals a new approach to balancing foreign investment and national interests.
- Economic/political narrative: Marks a shift under Trump toward industrial nationalism with global partnerships.
Job impact: