President Donald J. Trump on Friday issued an Executive Order reversing the Biden administration’s prior prohibition of Nippon Steel Corporation’s proposed acquisition of United States Steel Corporation.
The administration's acceptance of the deal was announced May 30, although details were not released [13868]. The order clears the way for the $14.9 billion deal to proceed, contingent upon the execution and enforcement of a binding national security agreement.
Trump’s action invokes Section 721 of the Defense Production Act of 1950, which authorizes the President to review foreign acquisitions that may threaten national security. President Joe Biden had previously relied on this authority to block the transaction on January 3, 2025, citing unresolved security concerns. Trump’s order amends that decision, asserting that the national security risks identified can be adequately mitigated through negotiated conditions.
The Executive Order directs that the acquisition remain prohibited unless Nippon Steel and U.S. Steel execute, and remain in compliance with, a national security agreement (NSA) approved by the Committee on Foreign Investment in the United States (CFIUS) and the Department of the Treasury. The agreement, Trump said, must be “materially consistent” with the draft transmitted by the U.S. Government on June 13, 2025.
Trump’s order affirms that there remains “credible evidence” the deal could impair U.S. national security, but newly negotiated conditions—including investment commitments, domestic oversight provisions, and a “golden share” held by the U.S. Government—render those concerns manageable.
Until the NSA is executed or the transaction is abandoned, CFIUS is authorized to monitor and implement enforcement measures as needed. Trump’s order also strikes two prohibitive clauses from Biden’s earlier directive and reserves the right to take future action.
The agreement is expected to include significant safeguards, including a requirement to maintain U.S. Steel’s Pittsburgh headquarters, provisions for U.S. board representation, and oversight rights enabling Washington to block key decisions affecting American supply chains.
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