Key facts
- President Donald Trump approved Nippon Steel's acquisition of U.S. Steel via executive order.
- The decision reversed former President Joe Biden's earlier block on national security grounds.
- A National Security Agreement (NSA) was reached, including $11 billion in new investments by 2028.
- The NSA grants the U.S. government a "golden share" and requires U.S. citizens in key leadership roles.
- Trump pledged no layoffs and significant investment in U.S. Steel facilities.
- Trump also announced plans to double steel import tariffs to 50%.
President Donald Trump has issued an executive order enabling Japanese company Nippon Steel to acquire U.S. Steel, reversing a prior decision by former President Joe Biden to block the deal on national security grounds. The acquisition, initially announced in December 2023, faced significant political scrutiny due to its implications for national security and American jobs, particularly in swing states.
Biden had blocked the deal in January 2025, citing potential security risks. However, Trump's new executive order proposes that these risks can be mitigated through a National Security Agreement (NSA) between Nippon Steel, U.S. Steel, and the U.S. government. This agreement, reached on June 14, 2026, includes $11 billion in new investments by 2028, a commitment to maintain operating blast furnaces for at least 10 years, and the U.S. government retaining a "golden share" with veto power over key decisions. The deal also mandates that crucial leadership roles be filled by U.S. citizens, and Trump pledged there would be no layoffs.
Nippon Steel's acquisition aims to enhance its long-term growth by expanding its U.S. footprint, a move made more critical by previous U.S. tariffs on steel imports. U.S. Steel, once a dominant player, had been seeking a buyer due to declining competitiveness. The combined entity would become the world's second-largest steelmaker, better positioned to compete with Chinese steel producers.
Despite hailing the agreement at a rally, Trump later indicated he had not seen the final details. He also announced plans to double current steel import tariffs to 50%. The United Steelworkers union had opposed the deal, advocating for domestic ownership, while U.S. Steel management and employees generally supported the acquisition.