Regarding the Proposed Acquisition of the United States Steel Corporation by Nippon Steel Corporation

President

Donald J. Trump

Signed

June 13, 2025

Source

White House

Original Document

https://www.whitehouse.gov/presidential-actions/2025/06/regarding-the-proposed-acquisition-of-the-united-states-steel-corporation-by-nippon-steel-corporation/

AI-Generated Summary

Executive Order Summary

Purpose

The purpose of this executive order is to address the proposed acquisition of United States Steel Corporation (U.S. Steel) by Nippon Steel Corporation and its affiliates (the Purchasers). It aims to reassess the national security implications of this transaction and determine the necessary conditions under which the acquisition may proceed.

Key Actions or Directives

• Reevaluation of Acquisition: The President ordered the Committee on Foreign Investment in the United States (CFIUS) to conduct a de novo review of the proposed acquisition, following a prior decision by then-President Biden to prohibit the transaction.
• Conditions for Approval: The order amends the previous prohibition, allowing the acquisition to proceed if the Purchasers and U.S. Steel enter into a national security agreement (NSA) with the Department of the Treasury and other relevant CFIUS agencies by the closing date of the transaction.
• Monitoring and Enforcement: CFIUS is authorized to implement monitoring and enforcement measures until the NSA is executed or the transaction is abandoned.
• Reservation of Authority: The President reserves the authority to issue further orders to protect national security.

Significant Changes to Policy or Law

• Conditional Approval: The order introduces a conditional approval mechanism, allowing the transaction to proceed under specific national security conditions, a departure from the outright prohibition in the January 3 Order.
• Authority of CFIUS: It expands CFIUS's authority to implement measures to protect national security until the NSA is in place or the transaction is abandoned.

Potential Impacts

• Government Agencies: The Department of the Treasury and CFIUS will be directly involved in negotiating and enforcing the NSA, increasing their workload and oversight responsibilities.
• Citizens: The order may affect job security and economic interests of employees and shareholders of U.S. Steel, depending on the outcome of the acquisition.
• International Relations: The decision could impact U.S.-Japan economic relations, as it involves a significant Japanese corporation.

Stakeholders

• United States Steel Corporation (U.S. Steel)
• Nippon Steel Corporation and its affiliates
• Committee on Foreign Investment in the United States (CFIUS)
• Department of the Treasury
• Employees and shareholders of U.S. Steel
• U.S. and Japanese governments

Legal, Constitutional, or Political Implications

• Legal: The order is grounded in section 721 of the Defense Production Act of 1950, which allows the President to suspend or prohibit transactions that threaten national security. The conditional approval introduces a new legal framework for handling such transactions.
• Constitutional: The President's authority to issue this order is derived from the Constitution and statutory powers, reflecting the executive's role in national security and foreign investment oversight.
• Political: The decision to reconsider a previous administration's order may signal a shift in policy or priorities regarding foreign investment and national security. It also highlights the executive's ability to influence significant corporate transactions.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.