U.S. President Donald Trump has conditionally approved Nippon Steel's acquisition of U.S. Steel, marking a dramatic policy reversal from the previous Biden administration's stance. The decision comes with a $11 billion investment commitment from the Japanese firm and unprecedented national security safeguards.
Under the agreement, Nippon Steel will channel funds into U.S. operations through 2028 while granting the U.S. government a "golden share" – a mechanism allowing veto power over strategic decisions. This arrangement aims to address longstanding concerns about foreign control of critical infrastructure.
The approval follows months of legal battles after President Joe Biden blocked the merger in January 2024, citing national security risks. Nippon Steel and U.S. Steel had jointly challenged the decision in federal court, arguing the deal would strengthen America's competitive position in global steel markets.
While Trump initially opposed the acquisition during his presidential campaign, his administration has now framed the conditional approval as a win for American workers and industrial competitiveness. The development signals potential shifts in U.S. trade policy approaches toward Asian partners under changing political leadership.
