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Trump Approves $11B Merger between U.S. Steel and Nippon Steel

Manufacturing and Engineering

Trump Approves $11B U.S. Steel–Nippon Steel Merger Deal

Business Honor
18 June, 2025

The merger promises major investments, job creation, and national security safeguards for U.S. steel industry.

President Donald Trump has recently signed an executive order to approve U.S. Steel's merger with Nippon Steel, opening the doors to $11 billion of investment in U.S. steel production by 2028. The deal, now cleared through all regulatory approvals, including the Department of Justice review process, awaits finalization.

This alliance is said to introduce major new investments, including the construction of a new steel production facility, which is expected to be completed after 2028. According to a report by Parker Strategy Group, which was commissioned by U.S. Steel, the two companies have promised to support American manufacturing and create over 100,000 jobs.

In the process of the merger's authorization, there has been a signing of a national security deal with the U.S. administration. Under this deal, the U.S. administration has been given veto power, in the form of "golden shares," to manage major decisions in the operations of the company. The action is meant to protect the interests of the U.S., especially in the strategic steel sector.

However, the merger has not been without objection. The United Steelworkers (USW) union has objected because the transaction could damage the long-term prospects of American steelmaking and job security. The union has also expressed dissatisfaction over Nippon Steel's failure to promise not to move production away from U.S. Steel's facilities. In spite of these objections, Trump and the companies are of the view that the merger will enhance American manufacturing.

The Biden administration rejected Nippon Steel's initial $14.9 billion offer to purchase U.S. Steel in December 2023 due to national security concerns. Nonetheless, it is anticipated that the acquisition will benefit American steelworkers and production in the long run with Trump's approval.

A significant turning point in the history of the American steel industry, this consolidation is probably going to have long-term implications for national security, investment, and employment in the years to come.