Trump Signs Executive Order to Facilitate Japanese Steel Investment in the US

President Donald Trump signed an executive order on Friday aimed at encouraging Japanese investment in U.S. steel, contingent upon compliance with a “national security agreement” outlined by the federal government.

The specifics of this national security agreement weren’t disclosed in the executive order.

Nevertheless, a joint statement from U.S. Steel and Nippon Steel indicated that the agreement outlines plans for approximately $11 billion in new investments by 2028, which includes providing the U.S. government with a “golden share.”

“We’re grateful to President Trump and his team for their strong leadership and support in this historic partnership,” the companies expressed.

They added, “This collaboration is set to generate significant investments that will benefit communities and families for generations.”

According to statements, the partnership has completed the necessary regulatory approvals from the U.S. Department of Justice.

They also mentioned that a speedy decision on the partnership is anticipated.

However, the companies didn’t offer much detail regarding the mechanics of the Golden Share or the types of investments planned.

Trump had remarked that he would retain “full control” over operations involving U.S. steel as part of the agreement.

He emphasized that “51% ownership by Americans” would be maintained in the investment deal.

Previously, Nippon Steel had proposed nearly $15 billion to acquire U.S. Steel, a merger that raised national security concerns during Joe Biden’s presidency. Interestingly, Trump had opposed this acquisition while campaigning, but he later showed optimism about resolving the deal once he took office.

He commented, “We have a golden share, but I have control,” leaving some uncertainty about what this implies for the federal government’s influence on U.S. steel operations.

Trump also voiced some concern, saying he’s “a little worried” about future presidents handling this golden share.

Nonetheless, Nippon Steel has not indicated that it is withdrawing its proposal to take over U.S. Steel entirely.

The proposed merger had been under review by committees from both the Trump and Biden administrations, assessing national security implications.

The signed order highlighted that there was “reliable evidence” indicating that actions could be taken that may jeopardize U.S. national security. However, those risks could be “appropriately mitigated” through the proposed national security agreement.

While the order doesn’t specify the national security risks in detail, it at least provides a timetable for the agreement.

Details from the White House about the contract’s terms have not been shared.

The order stated that a draft agreement was delivered to both U.S. Steel and Nippon Steel, which now must successfully fulfill the terms as established by the Treasury Department and other relevant federal bodies by the conclusion of the transaction.

Furthermore, Trump maintains the authority to initiate additional investment actions related to this agreement.