Trump Addresses National Security in Nippon Steel's U.S. Acquisition Bid

On June 13, 2025, U.S. President Donald Trump announced that the national security concerns surrounding Nippon Steel's proposed $14.9 billion acquisition of U.S. Steel could be resolved through specific conditions outlined by his administration. This declaration has significant implications for the steel industry and investment landscape in the United States.

Trump's executive order stated that if the outlined conditions are met, the perceived risks to national security associated with the acquisition could be adequately mitigated. However, the President did not provide explicit details on these conditions. According to Trump, "I additionally find that the threatened impairment to the national security of the United States arising as a result of the Proposed Transaction can be adequately mitigated if the conditions set forth in section 3 of this order are met." This executive order was released by the White House and marks a noteworthy step toward facilitating the approval of this high-profile acquisition.

Following Trump's announcement, shares of U.S. Steel saw a 3.5% increase in after-hours trading, signaling investor optimism regarding the deal's potential approval. Both Nippon Steel and U.S. Steel issued a joint statement expressing gratitude to Trump for his support and highlighting a commitment of $11 billion in new investments to be made by 2028 in conjunction with governance commitments, including the issuance of a golden share to the U.S. government. However, specifics regarding the control that this golden share would provide remain unclear.

The proposed acquisition has faced scrutiny since its inception, with opposition from various political figures, including both Democratic former President Joe Biden and Trump himself, who argued that U.S. Steel should remain under American ownership. Biden had previously blocked the deal on national security grounds, stating concerns regarding foreign ownership of critical industries. The Biden administration refuted claims from the companies that the national security review was biased, emphasizing a stringent evaluation process.

The acquisition bid, which was first announced by Nippon Steel in December 2023, has faced ongoing complications. Trump's administration opened an additional national security review in April 2025, following the change in administration. However, the clarity of Trump's approval has remained ambiguous, with his comments oscillating between welcoming Nippon Steel's investment and withholding final approval for ownership transfer.

At a rally in Pennsylvania on May 30, Trump characterized Nippon Steel as a potential "great partner" for U.S. Steel, yet he later indicated that the deal remained unresolved. The confusion surrounding the agreement was further compounded when a Nippon Steel executive communicated to the Japanese Nikkei newspaper that the acquisition would require "a degree of management freedom" to proceed, which conflicted with Trump's assertion of U.S. control through the golden share.

On June 5, both Nippon Steel and the Trump administration requested an eight-day extension from a U.S. appeals court to pause litigation, allowing more time to negotiate the deal. The expiration date for the current acquisition contract is set for June 18, 2025, although both firms have the option to negotiate a postponement.

The outcome of this acquisition is poised to impact not only the steel industry but also the broader economic and political landscape as the U.S. navigates its foreign investment policies, particularly in key sectors deemed vital to national security. As discussions continue, stakeholders in the steel industry and investors will be closely monitoring developments in this high-stakes situation.