Trump order allows Japan-based Nippon to invest in US Steel despite security concerns
The Brief
President Trump has reversed his own opposition to a "partnership" between U.S. Steel and Japan-based Nippon Steel.
Nippon has been trying to purchase U.S. Steel, but both the Trump and Biden administrations opposed the deal over national security concerns.
President Donald Trump has paved the way for Japan-based Nippon Steel to invest in U.S. steel, reversing his own opposition to the deal.
Trump signed an executive order Friday allowing for a Nippon-U.S. Steel "partnership," as long as Nippon adheres to a "national security agreement" from the federal government.
What we know
U.S. Steel and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a "golden share" — essentially veto power to ensure the country's national security interests are protected.
The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement from both companies said.
What we don't know
Trump's order didn't outline the terms of the national security agreement, and the companies offered few details on how the golden share would work and what investments would be made.
What they're saying
"We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership," the two companies said. "This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again."
Trump said Thursday that he would as president have "total control" of what U.S. Steel did as part of the investment.
"We have a golden share, which I control," said Trump, although it was unclear what he meant by suggesting that the federal government would determine what U.S. Steel does as a company.
Trump said then that the deal would preserve "51% ownership by Americans."
The backstory
The Japan-based steelmaker had been offering nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in a merger that had been delayed on national security concerns starting during Joe Biden's presidency. Trump opposed the purchase while campaigning for the White House, yet he expressed optimism in working out an arrangement once in office.
The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations.
Dig deeper
The order signed Friday by Trump said the CFIUS review provided "credible evidence" that 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.
The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement.
What's next
Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday.
The Source
This report includes information from The Associated Press.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Associated Press
16 minutes ago
- Associated Press
Photos of police search for suspect who shot 2 state lawmakers, including one who died, in Minnesota
BROOKLYN PARK, Minn. (AP) — A man impersonating a police officer shot and killed Minnesota state legislator Melissa Hortman and her husband at their home in what Governor Tim Walz called 'targeted political violence.' Authorities are searching for a 57-year-old man whom they suspect of killing the Minnesota lawmaker and her husband. Another Minnesota lawmaker and his wife were also shot but survived. __ This is a photo gallery curated by AP photo editors.
CBS News
16 minutes ago
- CBS News
Melissa Hortman, Minnesota lawmaker killed in targeted shootings, is remembered as devoted public servant
A manhunt is underway for a suspect who officials say shot and killed Minnesota state Rep. Melissa Hortman and her husband overnight. State Sen. John Hoffman and his wife were also injured in what Gov. Tim Walz called "politically motivated" shootings. Hortman and her husband were shot in Brooklyn Park, while Hoffman and his wife were shot in Champlin. The search for the suspect continues. A law enforcement source tells CBS News the FBI is assisting with the investigation. Who was Melissa Hortman? Hortman, 55, represented Minnesota House District 34B as a member of the Democratic Party. Her district covers Brooklyn Park, Coon Rapids and Champlin. Until Hortman was killed, the Minnesota state House was evenly divided 67-67. In the state Senate, Democrats hold a one-seat majority. Hortman also served as the Speaker Emerita of the Minnesota House. Hortman was elected to the Minnesota Legislature in 2004 and was in her 11th term. She is married and has two children. Last month, Hortman talked to WCCO in the lead-up to the potential special session where lawmakers finished up the budget. Melissa Hortman CBS "Melissa Hortman represented the best of Minnesota," DFL party chair Richard Carlbom said in a statement. "She was a tireless, devoted public servant who deeply loved our state and devoted her life to making it a better place. The warmth and kindness she showed to her family and friends were matched only by her fierce commitment to improving the lives of those she had never even met." "Hortman was someone who served the people of Minnesota with grace, compassion, humor, and a sense of service," Walz said. "She was a formidable public servant. A fixture and a giant in Minnesota." Who is John Hoffman? Hoffman, 60, represents Minnesota Senate District 34, which covers a swath of the northwest Twin Cities suburbs, including Rogers and Champlin. He was also a member of the Democratic Party. Hoffman was first elected to serve in 2012, and was reelected three times after. He served as chair of the Human Services Committee, and also served on committees for energy, environment and health and human services. He was born in 1965. He has one child. Minnesota state Sen. John Hoffman Minnesota State Senate Walz denounces political violence The governor released this statement late Saturday morning regarding the shootings: "Today Minnesota lost a great leader, and I lost a friend. A formidable public servant and a fixture of the state Capitol, Melissa Hortman woke up every day determined to make our state a better place. She served the people of Minnesota with grace, compassion, and tirelessness. Minnesota's thoughts are with her loved ones, and my prayers are with Senator John Hoffman and his wife Yvette, who were shot and wounded and are being treated. We are not a country that settles our differences at gunpoint. We have demonstrated again and again in our state that it is possible to peacefully disagree, that our state is strengthened by civil public debate. We must stand united against all forms of violence – and I call on everyone to join me in that commitment. To the responding officers, thank you for your bravery and your swift action. A state Bureau of Criminal Apprehension investigation is underway, and we will spare no resource in bringing those responsible to justice. We will not let fear win." This story will be updated.
CBS News
16 minutes ago
- CBS News
Massachusetts lawmakers condemn political shootings in Minnesota as "horrific"
Governor Maura Healey led Massachusetts lawmakers in condemning the shootings of state politicians and their spouses in Minnesota on Saturday. "It is not who we are" "I'm horrified to hear about the shootings in Minnesota. Lawmakers and their loved ones getting shot for their beliefs is yet another sickening act of political violence in a country where it's become all too common. I'm holding the family of Speaker Emerita Melissa Hortman and her husband Mark in my heart and praying for the full recovery of Senator John Hoffman and his wife Yvette. This is not normal. It is not who we are as Americans, and we must all condemn political violence in the strongest possible terms," Healey said in a prepared statement. Minnesota state Rep. Melissa Hortman and her husband were killed, and state Sen. John Hoffman and his wife were wounded in politically motivated shootings early Saturday morning. Massachusetts lawmakers outraged Many in Massachusetts expressed their outrage over the shootings. "This is political violence, pure and simple, and must be condemned in the strongest possible terms by every leader in this country. America's founders envisioned a country where we address our differences through debate, not violence. We must continue to use our voices to keep advocating for the country we dream to be, even as acts of political violence seem more common," said Massachusetts Senate President Karen E. Spilka. Massachusetts Democratic Party Chair Steve Kerrigan called the shootings "horrific." "I join leaders of both parties in stating, once and for all, that acts of politically motivated violence have no place in America," Kerrigan said. Meanwhile, Massachusetts House Speaker Ronald J. Mariano said he was "appalled and heartbroken" by the shootings. "Political violence of any kind has no place in America, nor does the kind of inflammatory rhetoric that can often incite that violence. This is not the America that we want for ourselves and for future generations. We must all strive for something better," Mariano said.
