Trump approves Nippon Steel–U.S. Steel deal with ‘golden share’ safeguard after initial opposition
Trump greenlights Nippon Steel’s U.S. Steel acquisition after initial strong opposition
From opposition to conditional approval
In December 2024, then President-elect Donald Trump openly opposed Nippon Steel’s $14.9 billion bid to acquire U.S. Steel, calling it “unacceptable” and pledging to block it once in office. His stance reflected concerns over foreign ownership of a strategic American industry and aligned with his broader protectionist policies.
However, after months of negotiations and investigations, Trump officially approved the deal on June 18, 2025, through an executive order. This reversal represents a significant shift from strict opposition to conditional acceptance, reflecting an effort to balance security concerns with economic interests.
Key terms of the agreement
Nippon Steel will acquire U.S. Steel for $55 per share, valuing the deal at $14.9 billion. The Japanese steelmaker has committed to investing $11 billion in U.S. operations by 2028 to strengthen local production capacity and secure supply chains.
With an annual crude steel production of 43.64 million metric tons in 2024, Nippon Steel ranked as the fourth-largest steel producer in the world (see full ranking here). Following the U.S. Steel acquisition, its total production capacity is expected to increase from 65 million to 85 million metric tons, further reinforcing its global standing.
Golden share and national safeguards
A critical condition for approval is the creation of a “golden share” for the U.S. government, granting veto power over major strategic decisions — including potential asset sales, headquarters relocations, or plant closures. The national security agreement also includes long-term monitoring, compliance reporting, and other governance mechanisms to ensure continued U.S. oversight.
Market impact and reactions
Following the announcement, U.S. Steel shares rose nearly 5%, reflecting investor optimism about modernization and expansion plans. The Japanese government praised the decision as a win for international industrial cooperation. However, some analysts caution that the golden share requirement may deter future foreign investments in critical U.S. sectors.
Broader implications for the steel industry
- Strengthened domestic operations through large-scale investments and modernization.
- A potential model for future cross-border acquisitions involving critical infrastructure or defense-related sectors.
- Continued emphasis on U.S. industrial independence, even amid global partnerships.
Trump’s reversal — from staunch opposition to conditional approval — underscores a pragmatic approach: balancing national security concerns with economic opportunities. The deal sets a precedent for future foreign investments, showing that strict security safeguards will likely be essential in sensitive sectors moving forward.
