In a major move shaking up the global steel industry, former U.S. President Donald Trump has officially approved Nippon Steel’s $14.9 billion acquisition of U.S. Steel. The deal, which had been stalled by political pushback and security reviews, finally cleared the last hurdle after both companies signed an agreement addressing national security concerns with the U.S. Treasury.
Trump issued an executive order greenlighting the merger, which includes a commitment by Nippon Steel to invest $11 billion in the United States by 2028. The Japanese steel giant will now take full ownership of the iconic American company. “We’re ready to make American manufacturing great again,” the companies said in a joint statement, expressing gratitude to Trump for his support.
The agreement also promises future expansions — with an additional $3 billion expected to be invested in a new mill post-2028. This positions Nippon Steel to benefit from America’s massive infrastructure projects while competitors still face steep tariffs of up to 50%.
However, one critical detail remains vague: the “golden share” the U.S. government is expected to receive. While officials suggest it may allow Washington to veto major decisions, no formal details have been disclosed. This uncertainty raises questions about how much control the U.S. will actually retain over its steel sector.
For Nippon Steel — the world’s fourth-largest steelmaker — the acquisition is more than just a financial move. It’s a strategic leap into one of the most lucrative and secure markets globally. The U.S. steel industry, particularly in high-grade steel, is booming amidst global trade tensions, and this deal gives the Japanese company a prime position to capitalize on that momentum.
Not everyone is cheering, though. Some Nippon Steel investors worry that the massive investment might strain the company’s finances in the short term. Additionally, the United Steelworkers union and politicians from both major parties had initially opposed the deal. Former President Joe Biden had even blocked it before leaving office in January, citing national security concerns — a decision that triggered legal battles from both companies.
With Trump back in power, a new 45-day national security review was conducted, eventually leading to approval. Still, Trump’s mixed messages — from welcoming a basic investment to insisting the U.S. would “control” the deal — created confusion about the terms and future oversight.
Japan’s government welcomed the decision, hoping it would strengthen U.S.-Japan relations and spark more innovation in both countries’ steel sectors. Trade Minister Yoji Muto stated that the deal would “enhance innovation capabilities” and deepen bilateral cooperation.
Now that the deal is official, all eyes are on how Nippon Steel will integrate U.S. Steel, whether it will honor its promises, and what the future holds for American workers and manufacturing.
