President Donald Trump signed an executive order Friday approving the merger between U.S. Steel and Japan’s Nippon Steel under a National Security Agreement (NSA).
The agreement includes more than $11 billion in new U.S. steelmaking investments by 2028, a move expected to create over 100,000 jobs for American workers. It also grants the U.S. government a “golden share” in the merger, ensuring commitments to domestic production, trade policy, and corporate governance, according to Fox Business.
Trump’s order marks a major step toward resolving the drawn-out, 18-month battle over the deal, which faced two national security reviews and strong opposition from labor unions wary of foreign ownership. The merger can now proceed, provided the companies sign an agreement with the Treasury Department that addresses the national security concerns associated with 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 further revealed that they had completed 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.”
Trump warned that the merger may still present unresolved 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, expressing optimism that an agreement will be reached.
As the merger moves toward final approval, the Committee on Foreign Investment in the United States (CFIUS) has been authorized to implement and enforce measures to safeguard U.S. national security until the partnership is finalized.
Speaking to thousands of steelworkers in Pittsburgh, Pennsylvania last week, President Trump assured that the agreement would allow Nippon Steel to invest in U.S. Steel without a full acquisition. Nippon Steel had originally proposed a $14.9 billion purchase of U.S. Steel in 2023, but the deal was paused amid political and union opposition.
“It’s great for the company, it’s great for the community and great for Western Pennsylvania,” said U.S. Steel manager Josh Matthews, though the union leadership isn’t quite yet sold on 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,” United Steelworker Union International President David McCall said in a statement.
“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,” he added.
