Introduction
In a landmark decision, U.S. President Donald Trump has officially approved the $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, following an intense 18-month review process that included union backlash, political resistance, and multiple national security evaluations.
What the Deal Includes
- Deal Value: $14.9 billion for 100% acquisition of U.S. Steel
- New Investment: $11 billion in U.S. steelmaking and infrastructure by 2028
- Future Plans: An additional $3 billion steel mill investment post-2028
The agreement also includes strategic governance and trade commitments. Notably, the companies pledged to issue a “golden share” to the U.S. government, potentially giving Washington veto power over key business decisions involving U.S. Steel.
Trump’s Executive Order Clears Path
President Trump signed an executive order authorizing the deal on June 13, 2025, stating that the companies could proceed if they signed an agreement with the U.S. Treasury resolving all national security concerns. Both firms quickly complied, triggering official approval.
“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” Nippon Steel and U.S. Steel stated in a joint announcement.
Why This Deal Matters
This acquisition marks the largest foreign purchase of a U.S. steel company and represents a strategic pivot for both American manufacturing and Japanese industrial expansion.
- Boosts U.S. Infrastructure: The $11B investment is expected to modernize steel production and support upcoming infrastructure projects.
- Bypasses Tariffs: Nippon Steel avoids paying high import tariffs (up to 50%) by producing within the U.S.
- Creates Jobs: Officials expect thousands of new jobs in steel towns, including Pennsylvania—crucial for the 2024 and 2028 elections.
Golden Share Controversy
Despite approval, questions remain regarding the “golden share.” This provision—promised by Nippon—was designed to grant the U.S. government veto power over sensitive decisions, but no concrete details have been released. U.S. Senator David McCormick of Pennsylvania previously emphasized that the golden share was essential to protect domestic interests.
Political Drama Behind the Deal
Originally launched in December 2023, the merger faced bipartisan resistance. Then-President Biden blocked the deal in January 2025 on national security grounds, but the companies sued, claiming political bias. The Trump administration reopened a fresh 45-day review in April, culminating in Friday’s approval.
At a campaign rally on May 30, Trump gave a vague nod to the deal, calling Nippon Steel a “great partner.” His backing became decisive, with Friday’s executive order removing final barriers.
Japanese and Global Reaction
The Japanese government welcomed the approval, calling it a victory for U.S.–Japan trade relations. Economy Minister Yoji Muto stated, “This investment will enhance innovation and cooperation between the U.S. and Japan in the steel industry.”
However, Nippon Steel’s investors expressed concern over the financial burden, especially with global markets rattled by fresh Middle East conflicts and broader economic uncertainty. Stocks dipped globally on Friday following geopolitical unrest and market anxiety.
Conclusion
The Trump-backed Nippon Steel–U.S. Steel acquisition signals a new era in American industrial policy, foreign investment, and economic diplomacy. With billions pledged and political will aligned, this deal could reshape the steel sector for decades—if it survives scrutiny over the golden share and manages investor expectations.
Stay tuned for developments at the G7 Summit, where Trump and Japan’s Prime Minister Shigeru Ishiba are expected to finalize broader trade agreements.