Nippon Steel logo is displayed at the company's headquarters in Tokyo

Nippon Steel logo is displayed at the company’s headquarters in Tokyo, Japan, April 1, 2024. REUTERS/Issei Kato/File Photo

The White House waved through the company’s $15 bln takeover of US Steel after an 18-month fight. Donald Trump’s tariffs may boost the target’s subpar returns too. But conditions tie the buyer’s hands. That suggests Japan will face rising barriers in its favoured overseas market.

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U.S. President Donald Trump on June 13 signed an executive order allowing Nippon Steel’s acquisition of United States Steel to proceed. Nippon had agreed to buy U.S. Steel for $14.9 billion in cash, including assumed debt, in December 2023.In a joint statement, the companies said they were entering into a National Security Agreement with the U.S. government that provides that approximately $11 billion in new investments will be made by 2028. The NSA also includes commitments related to governance, including a golden share to be issued to the U.S. government, they added.

Editing by Jonathan Guilford; Production by Maya Nandhini

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Una Galani is Asia Editor of Reuters Breakingviews, based in Hong Kong, overseeing a team of columnists across the region. She was previously in London, Dubai and Mumbai. Breakingviews is the global financial commentary brand of Reuters delivering agenda-setting insight in real time on the most important events impacting global markets and companies.