Trump approves U.S. Steel merger with Japan's Nippon after companies sign national security agreement
President Donald Trump issued an executive order on Friday approving U.S. Steel's merger with Japan's Nippon Steel, after the companies signed a national security agreement with the U.S. government.
Trump opposed U.S. Steel's controversial sale to Nippon in the runup to the 2024 president election, as Republicans and Democrats have leaned into protecting U.S. companies against foreign competitors.
But Trump started softening his opposition to the takeover after assuming office, ordering a new review of the deal in April. President Joe Biden had blocked U.S. Steel's sale to Nippon during his final days in office, citing national security concerns, despite Japan being a close ally.
Trump has avoided calling the deal an acquisition or merger, describing it as a "partnership" in a May 23 post on his social media platform Truth Social. He insisted that U.S. Steel will remain "controlled by the USA" during a speech to workers at one of the company's plants outside Pittsburgh on May 30.
U.S. Steel made clear it would become a "wholly owned subsidiary" of Nippon North America under the terms of the merger agreement in an April 8 filing with the Securities and Exchange Commission. Trump's description of the deal as a "partnership" caused confusion among investors and union leadership.
The president told U.S. Steel workers that Nippon will be a "great partner." The Trump administration is currently engaged in trade talks with Japan as investors eagerly await signs that the U.S. will strike deals with key partners that avoid steep tariffs.
Trump told the steelworkers that Nippon had agreed to keep U.S. Steel's blast furnaces operating at full capacity for a minimum of 10 years. The president said the deal would not result in layoffs and promised there would be "no outsourcing whatsoever." He said workers will receive a $5,000 bonus.
Trump announced that he was doubling U.S. tariffs on steel imports to 50% during his remarks to U.S. Steel workers. Those tariffs went into effect on June 4.
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