President Donald Trump has approved the merger between U.S. Steel and Japan’s Nippon Steel, a decision that follows the signing of a national security agreement between the companies and the U.S. government. This agreement grants the U.S. government a “golden share,” giving it certain powers over the merged entity’s governance, domestic production, and trade practices, though the specifics remain undisclosed.
The deal, initially met with opposition from Trump during the 2024 election campaign, has seen a significant shift in the former president’s stance. Following a review of the agreement in April 2025, Trump has embraced the partnership, emphasizing its benefits for American workers and the nation’s steel industry. This contrasts sharply with the Biden administration’s decision to block the sale on national security grounds.
Nippon Steel has committed to investing $11 billion by 2028, including a significant greenfield project slated for completion after 2028. While U.S. Steel has officially declared it will become a wholly-owned subsidiary of Nippon North America, Trump continues to refer to the arrangement as a “partnership,” a characterization that has led to some confusion among investors and union representatives. This has also prompted questions about the actual level of US control over the combined entity.
During a visit to a U.S. Steel plant in May 2025, Trump reiterated his support for the deal, assuring workers that Nippon Steel would be a “great partner,” maintaining full blast furnace capacity for at least a decade, preventing layoffs, and ensuring no outsourcing. He also announced a $5,000 bonus for workers and a doubling of U.S. steel import tariffs to 50%, further bolstering the domestic steel industry.
The merger’s approval comes amidst ongoing trade negotiations between the U.S. and Japan, raising questions about the broader implications of this deal for bilateral trade relations. The agreement’s long-term impact on American jobs, the steel industry, and national security remains to be seen, and further developments are expected in the coming weeks and months.
