Trump Assures Resolution of National Security Concerns in U.S.-Japan Steel Deal

U.S. President Donald Trump recently addressed concerns about Nippon Steel’s bid for U.S. Steel, valued at $14.9 billion. He stated that national security worries tied to the deal could be resolved if certain conditions were met. This news made investors optimistic, causing U.S. Steel shares to rise by 3.5% in after-hours trading.

While Trump did not share specific details, he mentioned that an executive order would outline the conditions for approval. He emphasized that the deal could potentially jeopardize U.S. national security but could be managed through his administration’s guidelines.

In a joint statement, both companies expressed gratitude for Trump’s guidance. They outlined plans for an $11 billion investment by 2028 and proposed governance measures, including a “golden share” that would give the U.S. government a degree of oversight. However, specifics about how much control this would provide were not disclosed.

This acquisition isn’t new; Nippon Steel announced its interest in acquiring U.S. Steel in December 2023. The deal has faced scrutiny from both political sides. For instance, former President Joe Biden blocked the deal shortly before leaving office, raising national security concerns. This led to litigation from the companies, claiming bias in the review process—an accusation the Biden administration denied.

The current Trump administration has resumed the review with a fresh perspective. On May 30, at a rally in Pennsylvania, Trump indicated that Nippon Steel could be a beneficial partner for U.S. Steel, though he later clarified that he hadn’t given final approval yet.

Public opinion on this merger is mixed. Some see it as a potential boost for U.S. Steel, while others worry about foreign ownership of critical industries. Recent surveys suggest that a significant portion of Americans, about 67%, are concerned about foreign investment in key sectors, especially in light of economic uncertainties.

Time is of the essence; the current acquisition contract between Nippon Steel and U.S. Steel expires on June 18, though both companies may seek an extension. This situation raises questions about the future of U.S. manufacturing and foreign investments. As negotiations continue, the industry is watching closely.

For an in-depth analysis of foreign investments in U.S. industries, check out Reuters for the latest updates.

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