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Trump Approves Nippon Steel’s US$14.9 Billion Purchase of U. S. Steel
06/16/2025 - U.S. President Donald Trump has approved Nippon Steel’s US$14.9 billion bid for United States Steel Corporation after both companies signed an agreement with the Treasury Department resolving national security concerns, reported Reuters.
Once they signed the agreement, the companies fulfilled Trump’s directive and therefore gained approval for the merger. Nippon Steel will buy a 100% stake in U. S. Steel according to a spokesperson for the company.
Nippon Steel will be making US$11 billion in new investments by 2028 in addition to governance, production and trade commitments. They will invest an additional US$3 billion for a new mill after 2028, said Reuters.
“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in a statement.
The companies did not provide any further detail on the “golden share” they allegedly pledged to the U.S. government. However, U.S. Senator David McCormick of Pennsylvania said last month the golden share would give the government veto power over key decisions relating to U. S. Steel, Reuters reported.
The takeover will reportedly allow Nippon Steel to capitalize on various American infrastructure projects while foreign competitors face 50% Section 232 tariffs on steel and aluminum.
In the interim, the Japanese Government is trying to secure a trade deal with the U.S. by the time Trump and Japanese Prime Minister Shigeru Ishiba meet at the Group of Seven summit on Sunday.
“The government of Japan welcomes the U.S. government's decision, as we believe this investment will enhance innovation capabilities in the U.S. and Japanese steel industries and further strengthen the close partnership between our two countries,” said Yoji Muto, economy, trade and industry minister of Japan.
Nippon Steel will be making US$11 billion in new investments by 2028 in addition to governance, production and trade commitments. They will invest an additional US$3 billion for a new mill after 2028, said Reuters.
“We look forward to putting our commitments into action to make American steelmaking and manufacturing great again,” the companies said in a statement.
The companies did not provide any further detail on the “golden share” they allegedly pledged to the U.S. government. However, U.S. Senator David McCormick of Pennsylvania said last month the golden share would give the government veto power over key decisions relating to U. S. Steel, Reuters reported.
The takeover will reportedly allow Nippon Steel to capitalize on various American infrastructure projects while foreign competitors face 50% Section 232 tariffs on steel and aluminum.
In the interim, the Japanese Government is trying to secure a trade deal with the U.S. by the time Trump and Japanese Prime Minister Shigeru Ishiba meet at the Group of Seven summit on Sunday.
“The government of Japan welcomes the U.S. government's decision, as we believe this investment will enhance innovation capabilities in the U.S. and Japanese steel industries and further strengthen the close partnership between our two countries,” said Yoji Muto, economy, trade and industry minister of Japan.
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