President Donald Trump signed an executive order Friday granting approval for the merger between U.S. Steel and Japan’s Nippon Steel, under a National Security Agreement (NSA).
The NSA outlines plans for more than $11 billion in new steel production investments within the U.S. by 2028, which is anticipated to generate over 100,000 new American jobs. Additionally, the deal grants the U.S. government a “golden share,” ensuring commitments related to corporate governance, domestic output, and trade, according to Fox Business.
This executive action marks a significant turning point in what has been an arduous 18-month journey involving two prior national security evaluations and pushback from labor unions opposing full Japanese ownership. With this order in place, the merger may now move ahead—provided both companies enter into an agreement with the Treasury Department that addresses remaining national security issues tied to the transaction.
“This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” U.S. Steel and Nippon Steel companies said in a joint statement.
The companies also disclosed that they’ve concluded the review process with the U.S. Department of Justice, stating that “all necessary regulatory approvals for the partnership have now been received, and the partnership is expected to be finalized promptly.”
In his executive order, Trump also acknowledged the potential for lingering national security risks. “I additionally find that the threatened impairment to the national security of the United States arising as a result of the Proposed Transaction can be adequately mitigated if the conditions set forth in section 3 of this order are met,” Trump wrote, while voicing confidence that a resolution will be achieved.
Pending final approval, the Committee on Foreign Investment in the United States (CFIUS) will continue to oversee and enforce national security protections related to the transaction.
During a recent speech in Pittsburgh, Pennsylvania, Trump addressed thousands of steelworkers, stating that the deal would enable Nippon Steel to invest in U.S. Steel without assuming full ownership. The Japanese firm originally proposed a $14.9 billion buyout in 2023, though political resistance and union concerns delayed its progression.
“It’s great for the company, it’s great for the community and great for Western Pennsylvania,” said U.S. Steel manager Josh Matthews.
The United Steelworkers Union (USW), however, remains cautious about the deal. “Whatever the deal structure, our primary concern remains with the impact that this merger of U.S. Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” USW International President David McCall said in a statement.
McCall further emphasized that the union won’t form a final opinion until more information is available. “Any final deal that may emerge from discussions between the merger parties and the federal government must be viewed through that lens, and not the lens of wishful thinking that has been adopted by far too many politicians and others. … Our members know from decades of negotiating contracts: Trust nothing until you see it in writing.”
