Trump Approves US Steel and Nippon Steel Partnership
NEW YORK, June 14, 2025 (BSS/AFP) – In a significant development within the steel industry, President Donald Trump has signed an executive order approving a partnership between US Steel and Nippon Steel. This partnership marks a pivotal moment in the ongoing debate over foreign investment in critical U.S. industries and aims to solidify national security guarantees.
The Background of the Partnership
The saga surrounding this partnership began in December 2023 when US Steel and Nippon Steel announced their ambitious plan for a $14.9 billion merger. However, the agreement faced substantial hurdles, primarily due to its implications for national security. Former President Joe Biden blocked the acquisition in the waning days of his administration, citing concerns about foreign control over essential American assets.
Initially resistant to the idea of foreign ownership, Trump’s stance evolved. Although he had publicly opposed Nippon Steel’s takeover, calling for US Steel to remain wholly American, his perspective shifted in May when he expressed support for a more collaborative partnership model. This change of heart set the stage for the recent executive order.
Ensuring American Presence
In a post on Truth Social, Trump reassured the public, stating, "US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh." His emphasis on maintaining a domestic presence underscores the administration’s commitment to safeguarding American jobs while still engaging in strategic international partnerships.
Job Creation and Investment
A joint statement from both companies highlighted the potential benefits of this partnership. They declared that Trump’s approval “will unleash unprecedented investments in steelmaking in the United States, protecting and creating more than 100,000 jobs.” This promise of job security is particularly appealing in a post-pandemic economy, where the hesitance of industries to invest in workforce expansion has raised concerns about future economic stability.
The National Security Agreement
Accompanying the executive order is a National Security Agreement (NSA) that the companies have entered into with the U.S. Government. Though details of the NSA were not fully disclosed, it stipulates that approximately $11 billion in new investments will be funneled into the steel sector by 2028. This kind of financial commitment is crucial for modernizing steel production, adapting to technological innovations, and abiding by increasingly stringent environmental regulations.
Review by CFIUS
The approval process for this partnership included a thorough review by the Committee on Foreign Investment in the United States (CFIUS). This committee specializes in assessing the national security implications of foreign investments in U.S. companies. Their scrutiny ensures that partnerships like this one do not compromise the safety and interests of the nation.
Presidential Oversight of National Security
Trump’s executive order also reserves the authority to issue further orders as deemed necessary to protect national security. This clause highlights the administration’s proactive approach to maintaining oversight over key economic sectors while facilitating international partnerships.
Implications for the Industry
The merger between US Steel and Nippon Steel is more than just a corporate alliance; it represents a broader strategy to bolster the U.S. steel industry against global competition. As import tariffs on foreign steel have fluctuated, American steel manufacturers have struggled to maintain market share. This partnership aims to help stabilize the industry while benefiting from foreign investments that can enhance technological capabilities and operational efficiencies.
By focusing on various aspects of this partnership—from its background and implications to the assurances made by Trump and the involvement of CFIUS—this development signifies a new era for the steel industry, marrying national interests with international collaboration.
