President Donald Trump has approved the long-debated merger between U.S. Steel and Japan’s Nippon Steel after the companies signed a national security agreement with the U.S. government, according to statements from both firms. The agreement includes provisions that grant the U.S. a “golden share.”
Trump issued an executive order on Friday authorizing the deal, which had faced political opposition during the 2024 presidential election cycle. The companies said the golden share provides the U.S. government with enhanced oversight, including commitments around corporate governance, domestic production, and trade. However, the exact powers granted by the golden share were not disclosed.
“All necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly,” U.S. Steel and Nippon said.
The agreement also requires Nippon to invest $11 billion in the U.S. by 2028. That total includes upfront funding for a greenfield project expected to be completed after 2028.
Trump stated on Thursday that the golden share gives the president “total control,” though he offered no further details. Pennsylvania Sen. Dave McCormick told CNBC last month the provision would allow the government to control several board seats.
Initially, Trump opposed the sale of U.S. Steel to Nippon, aligning with bipartisan concerns about protecting domestic companies from foreign ownership. President Joe Biden had blocked the transaction during his final days in office, citing national security issues, despite Japan being a U.S. ally.
However, Trump began easing his stance after taking office, launching a new review of the transaction in April. While U.S. Steel had described the deal as a full acquisition—stating in an April 8 SEC filing that it would become a “wholly owned subsidiary” of Nippon North America—Trump has reframed it as a “partnership.”
In a May 23 post on Truth Social, Trump said the company will remain “controlled by the USA,” and during a speech at a U.S. Steel plant outside Pittsburgh on May 30, he told workers that Nippon would be a “great partner.”
Trump also assured employees that U.S. Steel’s blast furnaces would remain fully operational for at least 10 years, with no layoffs or outsourcing. He added that each worker would receive a $5,000 bonus as part of the agreement.
Additionally, Trump announced a significant hike in steel tariffs, doubling the rate to 50%. The new tariffs took effect on June 4, as the Trump administration continues trade talks with Japan aimed at avoiding further tariff disputes.
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