The specifics of this national security agreement were not disclosed in Trump’s order. However, in a joint statement, US Steel and Nippon Steel announced that approximately $11 billion in new investments would be made by 2028. The agreement also grants the US government a “golden share,” which essentially gives them veto power to protect the country’s national security interests.
“We express our gratitude to President Trump and his administration for their bold leadership and strong support for our historic partnership,” stated both companies. “This partnership will bring a massive investment that will benefit our communities and families for generations to come. We look forward to implementing our commitments and making American steelmaking and manufacturing great again.”
The statement also mentioned that the companies have completed the Department of Justice review and received all necessary regulatory approvals.
The companies announced that the partnership is expected to be finalized promptly.
Although few details were given on how the golden share would function and what investments would be made, Trump stated on Thursday that, as president, he would have “total control” over US Steel’s actions as part of the investment.
Trump expressed concern about what other presidents might do with their golden share, “but that gives you total control.”
Nippon Steel has consistently stated that they are not backing off their bid to acquire and control US Steel as a wholly owned subsidiary.
The proposed merger had been reviewed by the Committee on Foreign Investment in the United States (CFIUS) during both the Trump and Biden administrations.
The executive order signed by Trump stated that the CFIUS review provided “credible evidence” that Nippon Steel “might take action that threatens the national security of the United States.” However, such risks could potentially be “adequately mitigated” by approving the proposed national security agreement.
The executive order did not provide details on the perceived national security risk and only gave a timeline for the national security agreement. The White House was approached for comment but declined to provide details on the terms of the agreement.
The order stated that the draft agreement was submitted to US Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as determined by the treasury department and other federal agencies that are part of CFIUS by the closing date of the transaction.
President Trump retains the authority to take further actions regarding the investment as part of the order signed on Friday.
Source: https://www.theguardian.com/us-news/2025/jun/13/trump-order-nippon-us-steel
