President Donald Trump approved a $14.9 billion Nippon Steel takeover of U.S. Steel under national security terms, igniting legal delays, investor unease, and union backlash.
At a Glance
- Trump signed an executive order on June 13 approving the deal, contingent on national security commitments
- The terms include an $11 billion investment in U.S. operations by 2028 and a “golden share” granting U.S. government veto rights
- A federal appeals court extended a litigation pause, requesting a status update by June 20
- U.S. Steel’s stock dropped roughly 4% following concerns over corporate control versus government oversight
- The acquisition reverses a Biden-era block and faces strong union and political opposition
Strategic Deal with Strings Attached
The Trump administration cleared the path for Japanese giant Nippon Steel to acquire U.S. Steel for $14.9 billion, pending strict national security conditions. According to Reuters, Trump’s June 13 executive order demands that Nippon adhere to a binding security agreement, including a rare “golden share” provision giving the U.S. veto power over strategic decisions.
Under the deal, Nippon Steel has pledged to inject $11 billion into U.S. operations by 2028, with potential expansion beyond that timeline. Tokyo’s government praised the approval, calling it a victory for industrial cooperation.
Watch a report: Trump Approves Nippon’s U.S. Steel Acquisition.
Court Action and Market Jitters
Despite the executive green light, legal hurdles remain. A federal appeals court has extended a pause in the case, demanding status updates from the involved parties by June 20. The litigation stems from an earlier Biden-era attempt to block the transaction over national interest concerns.
Investor reaction has been uneasy. U.S. Steel shares fell nearly 4% after comments from Nippon executives suggested they required “freedom of management,” creating apparent tension with the U.S. government’s reserved oversight rights. Analysts say the golden share’s implications for boardroom autonomy remain unclear.
Political Fallout and Union Opposition
Trump’s maneuver undoes President Biden’s previous block, a reversal that is drawing sharp criticism from the United Steelworkers union and lawmakers concerned about foreign control of critical industries.
While Nippon and U.S. Steel welcomed the development, they still face a challenging road. The security agreement must be finalized, legal questions resolved, and stakeholder confidence restored before the deal fully closes.
This high-stakes merger underscores the balancing act between foreign investment and national sovereignty, with U.S. Steel now emblematic of a broader industrial and geopolitical calculus.
