Donald Trump signed an executive order facilitating a potential Nippon Steel investment in US Steel, contingent on compliance with a national security agreement. The agreement, involving approximately $11 billion in new investments by 2028, includes granting the US government a “golden share” to safeguard national security interests. US Steel and Nippon Steel expressed gratitude for the support, emphasizing the partnership’s long-term benefits for communities and families.

The companies cleared a Department of Justice review and secured necessary regulatory approvals, anticipating a swift finalization of the partnership. Trump asserted control over US Steel’s actions within the investment, aiming to maintain 51% American ownership. The proposed merger, initially stalled due to national security concerns during Biden’s presidency, faced scrutiny from the Committee on Foreign Investment in the United States (CFIUS).

While the exact workings of the “golden share” remained vague, Trump’s order cited credible national security risks associated with Nippon Steel, which could be mitigated through the national security agreement. The terms of the agreement, submitted to the companies, will be determined by the treasury department and relevant federal agencies. Trump retains the authority to take further actions related to the investment.

Despite uncertainties surrounding the golden share’s implications, Nippon Steel persisted in its bid to acquire and control US Steel. The order’s focus on national security underscores the administration’s commitment to safeguarding vital interests in strategic investments, signaling a proactive approach to economic partnerships under Trump’s leadership.