President Donald Trump issued an executive order on Friday approving U.S. Steel's merger with Japan's Nippon Steel, after the companies signed a national security agreement with the U.S. government.

Even before the political complications that have hampered Nippon Steel’s U.S. gambit, the offer price looked steep. At $55 a share, Nippon Steel will pay a 142% premium to the level U.S. Steel was trading at before it effectively put itself up for sale in 2023.

The companies said they had entered into an agreement with the U.S. government to alleviate any national security concerns.

President Donald Trump would have unique influence over the operations of U.S. Steel under the terms of the investment being made by Nippon Steel.

For Japan and many other countries, the vulnerability that comes with relying on U.S. markets has become startlingly clear. First came tariffs on Canada, China, and Mexico. Then, in February, the administration introduced a 25 percent tariff on steel and aluminum (this week,