During a visit to US Steel – Irvin Works in West Mifflin, Pennsylvania, US President Donald Trump was presented with a gold helmet engraved with his name. This event marked the celebration of a new ‘partnership’ between Nippon Steel and US Steel. On that day, President Trump signed an executive order approving the merger of these two industry giants, following their signing of a national security agreement with the US government.
The agreement between US Steel and Nippon Steel includes granting the US government a “golden share,” which entails certain commitments regarding governance, domestic production, and trade. However, the specific powers associated with this golden share were not detailed by the companies.
Both companies confirmed that all necessary regulatory approvals have been obtained, and they anticipate the partnership will be finalized soon. As part of the national security agreement, Nippon Steel has committed to investing $11 billion by 2028, including funding for a greenfield project expected to be completed after 2028.
President Trump stated that the golden share provides him with “total control,” though he did not specify further. Pennsylvania Senator Dave McCormick mentioned that this share would allow the government to influence several board seats.
Initially, Trump had opposed US Steel’s sale to Nippon Steel, especially during the 2024 presidential election, as both political parties were focused on safeguarding American companies from foreign competition. However, after taking office, Trump reconsidered his stance and ordered a fresh review of the deal in April. This comes after former President Joe Biden blocked the sale in his final days, citing concerns over national security, despite Japan being a close ally.
Trump refrained from labeling the deal as a merger or acquisition, instead referring to it as a “partnership” in a recent post on his social media platform, Truth Social. He assured that US Steel would remain under US control during a speech to workers at a plant near Pittsburgh. Despite this, an April 8 filing with the Securities and Exchange Commission clarified that US Steel would become a “wholly owned subsidiary” of Nippon North America, causing some confusion among investors and union leaders.
During his visit, Trump assured US Steel workers that Nippon would be an excellent partner. He emphasized that Nippon had agreed to keep US Steel’s blast furnaces running at full capacity for at least 10 years. He assured there would be no layoffs or outsourcing and promised workers a $5,000 bonus.
Furthermore, Trump announced that he was doubling US tariffs on steel imports to 50%, a measure that took effect on June 4. This decision aligns with ongoing trade talks with Japan, as investors keenly watch for potential deals with key partners that could help avoid steep tariffs.
