WASHINGTON: President Donald Trump on Friday signed an executive order approving U.S. Steel’s merger with Japan’s Nippon Steel, following a national security agreement that grants the U.S. government a “golden share” in the combined entity.
The agreement, announced by both companies, includes $11 billion in Nippon investments by 2028 and commitments to maintain domestic production, governance oversight and trade conditions. Details of the golden share’s powers were not disclosed, though Trump said it gives him “total control.”
The merger, which had faced opposition from Trump and was blocked by former President Joe Biden over national security concerns, was re-evaluated after Trump assumed office. While Trump now describes the deal as a “partnership,” U.S. Steel previously stated it would become a wholly owned subsidiary of Nippon North America.
During remarks to workers in Pennsylvania, Trump said Nippon will keep blast furnaces operating at full capacity for 10 years, avoid layoffs or outsourcing, and issue $5,000 worker bonuses. He also announced a tariff hike on steel imports to 50%, effective June 4. Regulatory approvals have been finalized, and the companies expect to close the deal promptly.