US President Donald Trump signed an executive order clearing the path for Japanese conglomerate Nippon to invest in US Steel. While the specifics of the deal remain undisclosed, Nippon has been directed to adhere to a ‘national security agreement.’ A joint statement however, from Nippon and US Steel outlines a planned investment of nearly $11 billion by 2028.
In the executive order, issued by the White House, was mentioned overtly how the security concerns can be resolved. Thus, including a “golden share” in the agreement also gave the Trump administration a veto power to protect their interests.
Trump vs Biden: On Nippon
Nippon first announced the bid in December 2023 and faced opposition from both former President Joe Biden and Donald Trump. They rallied for US-ownership of US Steel. Biden, before exiting, blocked the deal on national security concerns in January 2025 which led to lawsuits from Nippon attributing bias. However, the Trump administration was in favour of this deal after welcoming an investment from Nippon shortly after coming to Office, the second time.
The remarks, similar to those made last month by a Republican senator from U.S. Steel’s home state of Pennsylvania, indicate that Mr. Trump wants significant control over the company as a prerequisite for approving the deal. However, the specifics of how a “golden share” would function are still unclear, as U.S. Steel and Nippon Steel rush to finalise the agreement following Mr. Trump’s unexpected social media announcement last month. The term typically means a government share held in companies which are ailing, as seen in the 2008 economic crisis for General Motors. However, this might be the differentiating feature between Biden’s disapproval in his term and flip of narrative Trump gave earlier.
US Steel share price
The Nippon bid for $14.9 billion investment set the motion for a steep increase. US Steel share price rose 3.5% as investors saw the deal being close to done. Following the executive order, however, the United States Steel Corp closed at a 2.9% decline, closing at a bearish low, a blow to both the firm and its employees.
Trump’s executive order
The executive order signed by Trump revealed that US Steel retained a “51% US ownership”. As per the Committee on Foreign Investment in United States (CFIUS) review, “credible evidence” was provided basis, Nippon Steel “might take action that threatens to impair the national security of the United States”, but such risks might be “adequately mitigated” by approving the proposed national security agreement.
Nippon-US-Steel seal
Over the span of his tenure, Trump has swayed the market, potentially, to his whims. Earlier this month, on June 5, Nippon Steel and the US-government approached the US appeals court for an eight-day extension of a pause on litigation. Thus, Trump’s approval signals strategic compromise, securing investment while asserting control over national assets amid ongoing global economic tensions.