Trump Offers Conditional Go-Ahead to Nippon Steel’s $14.9 Billion U.S. Steel Deal

Executive Order Opens Door for Approval Pending National Security Safeguards

In a significant development for the steel industry, former U.S. President Donald Trump has conditionally approved Nippon Steel’s $14.9 billion acquisition of U.S. Steel, provided specific national security safeguards are met. The announcement, made via executive order, has stirred optimism in the markets and speculation over the future of U.S. Steel’s ownership.

Key Conditions Set in Executive Order

Trump’s executive order did not outline specific terms but stated that an agreement would spell out the conditions necessary to address national security concerns. He remarked, “The threatened impairment to the national security of the United States… can be adequately mitigated if the conditions outlined in section 3 of this order are met”.

$11 Billion Investment, Golden Share for U.S. Government

Nippon Steel and U.S. Steel responded with a joint statement expressing gratitude and outlining their commitments under the prospective agreement. This includes a pledge of $11 billion in new investments by 2028 and the issuance of a “golden share” to the U.S. government. However, the extent of control conferred by this golden share remains undisclosed.

Political Backdrop: Bipartisan Opposition and Strategic Timing

The proposed acquisition, first announced in December 2023, has faced bipartisan scrutiny. Both Trump and former President Joe Biden previously opposed foreign ownership of the iconic American company, especially amid their campaigns to win over Pennsylvania voters, where U.S. Steel is headquartered.

In January, Biden blocked the deal on national security grounds, a move that triggered legal action by the companies. They alleged the review process under the Biden administration was biased, a claim the White House rejected. Following Trump’s return to office in January 2025, a fresh 45-day national security review began in April.

Market Reaction and Legal Timeline

Shares of U.S. Steel climbed 3.5% in after-hours trading following Trump’s executive order, signaling investor confidence that the deal could proceed.

Still, ambiguity persists. Trump’s own statements have varied — from praising Nippon Steel as a “great partner” during a May 30 rally in Pennsylvania, to suggesting the deal was not yet finalized. The two companies, along with the administration, have requested an extension on litigation until June 14 to finalize the agreement. The current acquisition contract is set to expire on June 18, though an extension remains a possibility.

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