U.S. Steel Gains $11B Boost with National‑Security Pact \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Trump signed an executive order enabling Nippon Steel’s proposed $14.9 billion acquisition of U.S. Steel, contingent on a national-security agreement including an $11 billion investment by 2028 and a “golden share” for U.S. oversight. The deal addresses earlier national-security concerns raised by both Biden and Trump, and follows CFIUS review and DOJ clearance. The agreement mandates maintaining headquarters in Pittsburgh, a U.S.-majority board, and limits on steel imports—subject to Trump’s ongoing executive authority.
Quick Looks
- $11B Investment by 2028: Commitment to modernize U.S. Steel, with additional post-2028 investment.
- “Golden Share” Power: U.S. government gains veto rights to protect national security.
- CFIUS & DOJ Approved: Deal cleared by national security and antitrust reviews.
- Continuity in Pittsburgh: Headquarters, U.S.-majority board, and U.S. CEO maintained.
- Trump’s Oversight Promised: Executive order reserves further presidential authority.
Deep Look
President Donald Trump has officially greenlit the controversial acquisition of U.S. Steel by Japan’s Nippon Steel Corporation, signing an executive order that lays out national security terms for the $28 billion transaction. The move marks a turning point in the deal that had faced scrutiny under both his and Joe Biden’s administrations. As the current president, Trump’s authorization is pivotal in shaping the future of America’s steel industry and reasserting executive oversight over key industrial assets.
The executive order mandates compliance with a still-undisclosed “national security agreement” designed to protect U.S. strategic interests. Central to this deal is the U.S. government receiving a “golden share,” a special class of ownership that grants Washington veto power over decisions that could affect national security—most notably potential reductions in steel production, foreign control, or technology transfers.
While the exact contents of the agreement remain confidential, both companies confirmed in a joint statement that Nippon Steel has committed to investing approximately $11 billion in U.S. operations through 2028. This includes advanced infrastructure, likely centered around new electric arc furnace facilities, which are considered more energy-efficient and environmentally friendly compared to traditional blast furnaces.
President Trump praised the deal, characterizing it as a “monumental step in revitalizing American manufacturing.” Speaking from the White House, Trump emphasized that this agreement aligns with his America First policy. “We have a golden share, which I control,” he said, underlining his personal commitment to preserving U.S. sovereignty in industrial sectors.
He added that while Nippon Steel would operate U.S. Steel as a wholly owned subsidiary, the terms of the golden share and the broader agreement ensured “total control remains with the American people.” Trump also floated the idea of maintaining 51% American ownership, although this appears symbolic given Nippon Steel’s full acquisition strategy.
The agreement also includes stipulations to preserve U.S. Steel’s headquarters in Pittsburgh, retain a majority-American board of directors, and continue operations at existing plants, including facilities in Pennsylvania and Indiana. Nippon Steel has committed not to import steel slabs that would compete with U.S.-based operations—a key point for union leaders and state officials.
The deal has cleared a U.S. Department of Justice review and received all necessary regulatory approvals. The Committee on Foreign Investment in the United States (CFIUS) had earlier raised red flags, citing “credible evidence” that Nippon Steel could pose a risk to national security. However, Trump’s executive order indicates those risks can be “adequately mitigated” through the proposed agreement.
White House spokesman Kush Desai said the decision reflects Trump’s strategic vision for economic security: “This ensures U.S. Steel remains not only in the Commonwealth of Pennsylvania but under vigilant oversight as a pillar of American strength.”
Legal experts note that while golden shares are rare in the U.S., they are increasingly considered in transactions involving critical infrastructure. James Brower, a partner at Morrison Foerster specializing in national security law, said the structure likely gives the federal government rights to approve or reject actions such as asset sales, technology transfers, or significant layoffs.
Despite the high-stakes nature of the deal, U.S. Steel did not make any filings to the Securities and Exchange Commission on the day of Trump’s announcement. This could be due to the sensitive nature of the national security discussions or pending finalization of the agreement terms.
The road to this deal has been long. Nippon Steel first proposed buying U.S. Steel in 2023 for nearly $15 billion, but regulatory delays under the Biden administration put the deal on ice. Trump, who opposed the merger while campaigning in 2024, reversed his position after reassuming office in January 2025, opting instead to shape the terms of the deal to fit his national security and economic agenda.
“This is about keeping American steel strong, safe, and secure for generations,” Trump declared, adding that his administration remains ready to take further action if Nippon Steel fails to honor the agreement.
As part of the executive order, the U.S. Treasury and federal agencies involved in CFIUS must oversee the implementation of the agreement, which both companies must formally accept before the transaction closes. Trump also retained the authority to issue additional directives to ensure compliance.
The final outcome of the agreement could set a new precedent for how foreign investments in critical American industries are handled—especially under Trump’s assertive nationalistic economic policies.
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