Trump Says U.S. Will Control Nippon Steel Partnership Deal/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The U.S. government will retain control in a restructured deal between Nippon Steel and U.S. Steel, with an American CEO, majority-U.S. board, and government oversight. President Trump and Sen. David McCormick confirmed the arrangement, citing national security concerns. Nippon Steel will invest $14 billion while preserving jobs, facilities, and domestic production capacity.
Nippon Steel-U.S. Steel Deal: Quick Looks
- Deal Structure: U.S. to maintain control via American CEO and board
- National Security: Trump insists U.S. must “control” deal
- Investment Amount: $14 billion Nippon Steel investment into U.S. Steel
- Golden Share: U.S. holds veto power over board, ensuring production levels
- Union Opposition: Steelworkers previously opposed full acquisition
- Facility Upgrades: $2.4 billion pledged for Pittsburgh-area steel facilities
- Electric Furnace Plans: New modern mill to be constructed
- Tariff Benefits: Nippon gains U.S. market access under protectionist policy
Trump Says U.S. Will Control Nippon Steel Partnership Deal
Deep Look
Trump, McCormick Confirm U.S. Will Retain Control in Restructured Nippon Steel–U.S. Steel Deal
Harrisburg, PA — The U.S. government will retain oversight in a revised agreement allowing Japan-based Nippon Steel to invest in iconic American manufacturer U.S. Steel, Senator David McCormick confirmed Tuesday. The announcement follows remarks from President Donald Trump that any final deal must ensure American control, citing national security concerns.
“U.S. Steel will be controlled by the United States,” Trump declared Sunday. “It’s an investment and a partial ownership, but it’ll be controlled by the U.S.A.” He previously described the arrangement as a “partnership” rather than a takeover.
Senator McCormick elaborated Tuesday on CNBC, explaining that the deal includes a U.S.-based CEO, a majority-American board of directors, and a “golden share” that gives the U.S. government veto authority over certain board decisions — particularly around production levels and key operations.
Investment, Oversight, and Security Conditions
The $14 billion deal involves not only a massive investment by Nippon Steel but also a binding national security agreement with the U.S. government. McCormick emphasized that this framework was proposed by Nippon itself, even though the company has not yet publicly confirmed its acceptance of the revised terms.
Key conditions include:
- An American CEO leading U.S. Steel
- A majority-U.S. board overseeing governance
- Golden share clause giving U.S. officials approval rights on board changes and strategic decisions
- $2.4 billion investment in Pittsburgh-area steelworks, including the historic Edgar Thomson Works
- A new electric arc furnace, aligning with modern, eco-friendly steelmaking technologies
Continuity with Prior Nippon Pledges
Many of these provisions were already part of Nippon Steel’s original bid, including the commitment to:
- Maintain U.S. Steel’s headquarters in the United States
- Avoid layoffs or plant closures
- Keep domestic steel production protected from foreign imports
- Support U.S. Steel’s role in trade advocacy and defense
Nippon has not yet issued a statement confirming whether it fully agrees to the new governance structure described by McCormick and Trump, but it did release a general statement last Friday calling the potential partnership “a game changer.”
Strategic Market Access and Tariff Advantage
From Nippon Steel’s perspective, the partnership secures vital access to the U.S. steel market — particularly under current protectionist trade policies that include steep tariffs on foreign steel.
McCormick acknowledged this strategic benefit, noting, “They negotiated it. It was their proposal, and they know what they’re getting into.”
He emphasized that the deal is a win-win: a strategic investment for Nippon, and a pathway to preserving U.S. jobs, production capacity, and control over a critical industry.
Opposition and Political Review
The original $14.9 billion acquisition deal was approved by U.S. Steel’s board and shareholders, but it drew fierce opposition from the United Steelworkers union and was blocked by then-President Joe Biden in his final days in office. Upon returning to the White House, Trump ordered a renewed national security review through the Committee on Foreign Investment in the United States (CFIUS).
That review prompted the current restructuring, framed as a controlled partnership rather than a full foreign acquisition.
Conclusion: A Rebalanced Global Partnership
The restructured deal appears to walk a careful line between encouraging foreign investment and ensuring U.S. sovereignty over strategic manufacturing. Trump’s insistence on control and oversight, combined with McCormick’s detailed rollout of the terms, underscores a new model for global industrial partnerships under the administration’s national-first economic doctrine.
Nippon Steel, if it accepts the final conditions, would gain stable U.S. access under favorable trade protections, while the U.S. retains leadership and production safeguards. Whether this structure satisfies labor groups and clears regulatory finalization remains to be seen.
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