Trump Administration Greenlights Nippon Steel Investment in U.S. Steel with Government ‘Golden Share’ Control

16 June 2025

Nippon Steel logo is displayed at the company's headquarters in Tokyo, Japan April 1, 2024. REUTERS/Issei Kato

In a dramatic shift from previous opposition, the Trump administration has approved Japan’s Nippon Steel acquisition of U.S. Steel, contingent on a binding national security agreement that grants the U.S. government a so-called “golden share” over key corporate decisions. This arrangement comes after former President Biden had blocked the deal, citing national security concerns. The announcement signals both a strategic pivot in U.S. foreign investment policy and a renewed emphasis on preserving domestic industry.

Under this newly revealed framework, President Trump gains veto rights over several critical actions, including the relocation of U.S. Steel’s Pittsburgh headquarters, job outsourcing, plant closures, and any delay or cancellation of planned capital investments. Commerce Secretary Howard Lutnick explained that U.S. Steel cannot move overseas, offload U.S. jobs, or rebrand the company without presidential approval, and that the executive “golden share” allows the White House to directly influence board appointments if necessary.

Nippon Steel has committed to investing around $11 billion by 2028 into U.S. Steel, with total deal value estimated at $28 billion when including funding for infrastructure such as a new electric arc furnace. The company has also pledged to retain the Pittsburgh headquarters, honor existing union contracts, and ensure an American-majority board setting.

Financial markets reacted positively to the news. Nippon Steel shares rose approximately 3% in early trading following Trump’s announcement, while U.S. Steel shares surged as much as 5% in pre-market trading, advancing toward the $55-per-share offer price.

Analysts note that Nippon’s increased annual steel capacity from 63 million to 86 million metric tons augments its global scale and strengthens U.S. presence in high-end steel manufacturing

Despite this economic promise, concerns remain, especially among labor leaders. The United Steelworkers union expressed frustration that they were excluded from negotiations and criticized the administration for reversing its prior stance. They also raised questions about transparency, citing undisclosed deal terms and a looming contract deadline in September 2026 . Some union figures, however, express cautious optimism that the deal might help revitalize U.S. Steel’s aging plants.

President Trump framed the deal as part of his administration’s “America First” industrial strategy, emphasizing that the golden share ensures critical domestic control. He went from opposing the acquisition during the 2024 campaign to promoting it as a conditional partnership strengthening American industry.

Trump also tied the decision to wider protectionist measures, including his earlier move to raise steel and aluminum tariffs to 50%, arguing they're designed to support reciprocal foreign investment alongside domestic production.

The move arrives as American manufacturing undergoes strategic evaluation. With high interest rates, global supply chain concerns, and simmering geopolitical tensions, the restructuring of U.S. Steel represents a textbook case for combining foreign capital with domestic safeguards. Analysts suggest the agreement could serve as a template for future deals in critical sectors like semiconductors, green energy, and defense manufacturing.

However, geopolitical risk remains. Some critics question whether such a golden share can prevent future administrations from overriding protections, as Trump himself noted uncertainty about successors exercising the same level of restraint. Meanwhile, union voices warning of potential layoffs or renegotiated labor terms are keeping workers and communities vigilantly attentive.

Legislators from Pennsylvania have welcomed the deal, emphasizing its potential to preserve the area’s industrial heritage while avoiding foreign control so long as jobs and production remain intact.

With all required regulatory approvals secured, the deal is now proceeding to final documentation and execution. Investors and political stakeholders alike are closely monitoring whether the combination of foreign investment, government oversight, and industrial strategy can safely and successfully recalibrate one of America's most iconic companies.