U.S. President Donald Trump officially approved the $14.9 billion acquisition of U.S. Steel by Japan’s Nippon Steel, concluding an 18-month saga marked by labor union resistance and multiple national security reviews. The approval came via executive order, contingent on an agreement between the companies and the U.S. Treasury Department to address national security concerns.
Once the agreement was signed, the merger was effectively greenlit. This marks a pivotal moment in U.S.–Japan industrial collaboration, especially given the political sensitivity surrounding a historic American company like U.S. Steel.
Major Investments, Strategic Expansion, and Lingering Concerns Over U.S. Government Control Terms
The companies jointly pledged $11 billion in investments by 2028, alongside commitments related to governance, production, and trade. Nippon Steel will take full ownership of U.S. Steel. Despite these public assurances, some ambiguity remains around the “golden share” promised to the U.S. government.
This special share, reportedly giving veto power over critical corporate decisions, sparked both curiosity and concern regarding the actual control Washington might exert. Additionally, Reuters reported an extra $3 billion investment is planned post-2028, further emphasizing Nippon’s long-term commitment.
Trump Approves Nippon Steel’s $14.9 Billion U.S. Steel Takeover After Security Review and Union PushbackThe deal offers critical financial lifelines to U.S. Steel and aligns with Nippon Steel’s ambition to expand in a growing U.S. market. This move helps the Japanese firm circumvent steep U.S. steel tariffs while positioning itself to benefit from large-scale American infrastructure initiatives.
It also avoids a $565 million breakup fee that would have been due if the deal fell apart. However, some Nippon investors have expressed concern over the high cost of the deal and the pressure it could place on the company’s finances in the short term.
Political Resistance, Diplomatic Stakes, and Final Approval Amid U.S.–Japan Trade Negotiations Shift
The Japanese government welcomed the merger, hoping it would enhance U.S.–Japan industrial cooperation and innovation. The announcement also comes at a time of high diplomatic activity, with Japan seeking to finalize a trade deal with the U.S. ahead of the upcoming G7 summit.
Trump’s positive framing of Nippon as a “great partner” marks a stark contrast to earlier bipartisan opposition—both Trump and Biden had previously expressed disapproval of the deal during the 2024 election campaign, partly due to its political implications in key battleground states like Pennsylvania.
Nippon Steel’s bid faced strong headwinds from the start. The United Steelworkers union’s opposition sparked political backlash, with both major party candidates taking a stand against foreign control of U.S. Steel during the campaign season. Biden formally blocked the deal near the end of his term, citing national security concerns.
After lawsuits and accusations of bias followed, the companies found a new opportunity under the Trump administration, which conducted another national security review. Although Trump’s public statements on the deal were often ambiguous, ranging from conditional support to suggestions of a minority stake, his final executive order has now cleared the path for the acquisition to proceed.
