Nippon Steel may take US Steel anyway, but Trump gets “golden share”

This article was last updated on June 20, 2025

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Nippon Steel may take US Steel anyway, but Trump gets “golden share”

After a year and a half of politics and a series of lawsuits, the US government has given the green light today: the Japanese company Nippon Steel Mag us Steel. “America needs this collaboration to become stronger in the steel industry,” said Eiji Hashimoto, CEO of Nippon Steel, during a press conference.

The acquisition of nearly $ 14 billion will come with a striking condition: the US president, or a designated representative of the government, gets a direct influence on important decisions within US Steel through a ‘golden share’.

This can, for example, block factory closures, stop the relocation of production abroad and intervene in the general trade policy of the steel maker. Nippon Steel gets fully owned, but thereby submits a large part of his freedom.

Chinese competition

For the Japanese company it is a huge concession, but a necessary sacrifice. CEO Hashimoto calls the deal important to strengthen the competitive position of both Nippon Steel and US Steel compared to the cheap Chinese steel that now floods the world market. The domestic American market can grow and is better protected against price pressure than Asia, the CEO thinks.

The deal also brings benefits for Japan. With $ 11 billion in investments and the introduction of new production technologies, Nippon Steel wants to contribute to the restoration of the ailing American steel industry and at the same time make its own company more future -proof.

At the time, President Biden was still blocking the acquisition in January. Not because of the growth potential, but because he was afraid that important American factories would be in foreign hands. US Steel supplies steel for the American defense industry and large infrastructure projects. This serves the company as crucial for national strategic interests. The fear was that foreign control in crisis time would jeopardize US production capacity.

For these reasons, Trump also expressed fiercely against the acquisition during his election campaign last year. He called US Steel an “icon of American industry” that was not allowed to fall into foreign hands.

This week he reversed this decision, after Nippon Steel had promised to invest billions in the coming years. The company also promised to preserve the head office of US Steel in Pittsburgh, and that the most important drivers and managers remain American.

‘Japan is standing hard’

Yet there are also concerns at Japanese companies about the more and more industrial policy of the US. President Trump recently increased his import duties on steel and aluminum from 25 percent of 50 percent, with the aim of protecting American industry and to get more jobs back to his own country.

The Japanese steel industry in particular now notices the consequences. In 2023, Japan exported nearly 33 million tonnes of steel, good for more than 26 billion euros, with the US as the most important market. Due to the US taxes, the export in March fell by almost 17 percent compared to a year earlier.

Although the US recently announced a ninety -day break for the most important import duties, a general import rate of 10 percent will remain in force for the time being. As long as Trump sticks to his promise to breathe new life into the American industry, there will be limitations to foreign companies. As a result, Japan continues to suffer from limited access to the American market.

Negotiations on the taxes between the two countries are also difficult. Trump stated that Japan “stands up hard” in the conversations. In Tokyo there is a growing fear that the trade conflict will escalate further and that there is little room for real concessions.

‘Unprecedented personal power’

With the acquisition there is again the prospect of opportunities for Japanese companies that want to do business in the US. Nippon Steel therefore sees the deal as an important step to stay active on the American market. “Our desire to do large -scale business in the US is in line with American policy to restore the industry,” responded the delighted CEO Hashimoto today.

Despite the long list of compromises to the US, not everyone is satisfied. The American trade union United SteelWorkers (USW) fiercely opposed the deal from the start. Chairman David McCall calls the golden share a means that gives Trump “unprecedented personal power”.

The trade union leader emphasizes that he will sharply monitor whether Nippon Steel actually fulfills his promises about jobs and working conditions, and announces that he will take strong action if necessary.