Welcome to Industrials Regulatory News and Trends. In this regular bulletin, DLA Piper lawyers provide concise updates on key developments in the industrials sector to help you navigate the ever-changing business, legal, and regulatory landscape.
Nippon Steel acquires US Steel. Nippon Steel has completed its $14.2 billion acquisition of US Steel, following President Donald Trump’s endorsement of an agreement that gives sitting US presidents significant control over the company via the so-called golden share mechanism. Under the agreement, crafted to address national security concerns, the US government holds a single share of preferred stock, “Class G,” under which the president has veto power over a wide array of company actions. Among these: the president’s permission would be required to change the company’s name, relocate its headquarters out of Pittsburgh, relocate or close existing plants, change the way it sources raw materials, and move jobs abroad. The sitting president is also empowered to appoint one of the three independent directors on the US Steel board and will have veto power over the other two. Nippon Steel last week purchased all shares of US Steel, paying $55 a share, and has agreed to invest $11 billion in its US operations over the next three years. On June 18, US Steel ceased trading on the New York Stock Exchange, a delisting that becomes final on June 30. US Steel will retain its historic name, but now operates as a subsidiary of Nippon Steel North America. The combined entity becomes the world’s second-largest steelmaker.
Meanwhile, Ohio-based steelmaker Cleveland-Cliffs, which last year also sought to purchase US Steel, has seen its stock rise 25 percent this month, buoyed by steel tariffs. The company, which announced in Q1 that it would idle six US facilities “to optimize its footprint,” will hold a ribbon-cutting ceremony at its Coshocton, Ohio plant on July 2 for its new Vertical Stainless Bright Anneal Line, where it will manufacture premium stainless steel for high-end automotive and critical appliance applications. Reportedly, the company is backing away from its March 2024 announcement that, with the help of a Department of Energy grant, it would build a direct reduced iron plant and two electric furnaces - low-emissions ironmaking facilities that would run on clean hydrogen rather than fossil fuels. This spring, Canary Media reports, CEO Lourenco Goncalves told investors that it was impossible to source hydrogen fuel in a timely way and that the company is exploring changes to the project “to better align with the administration’s energy priorities,” including running the new facility with fossil fuels.
US tariffs will now apply to all steel-based appliances. On June 16, the Trump Administration announced in a notice published in the Federal Register that its upcoming 50 percent steel tariffs will apply to consumer appliances that contain steel. Starting on June 23, those so-called derivative products will be taxed an additional 50 percent based on the amount of steel they contain. Among the affected products are refrigerators, dryers, washing machines, dishwashers, freezers, ovens, garbage disposals, and wire racks.
Relatedly, trade negotiations between the US and Canada are ongoing. Should those talks fail, Canada has stated that it will establish tariff rate quotas of 100 percent of 2024 levels on steel imports from countries with which it doesn’t have a free trade agreement and will take steps “to address risks associated with persistent global overcapacity and unfair trade in the steel and aluminum sectors, which are exacerbated by U.S. actions.” Starting June 30, the Canadian government will procure steel and aluminum products only from domestic suppliers and from foreign suppliers in countries where Canada has reciprocal tariff-free access through free trade agreements.
Ontario’s Bill 5 is now law: What foreign mining investors should know. The Protect Ontario by Unleashing our Economy Act, 2025 introduces a suite of legislative changes intended to accelerate resource development in Ontario, especially in relation to critical minerals, while granting new powers to protect the province’s strategic supply chain.
Ninth Circuit holds private parties can bring claims against importers under the False Claims Act for antidumping duty evasion. The United States Court of Appeals for the Ninth Circuit has issued an important opinion with potentially far-reaching consequences for companies that import merchandise, including but not limited to those subject to antidumping or countervailing duty (AD/CVD).
Trade group seeks postponement of Oregon’s EPR act. On June 4, the National Association of Wholesaler-Distributors wrote to Leah Feldon, director of Oregon’s Department of Environmental Quality, to request a one-year delay in the July 1, 2025, effective date of the state’s extended producer responsibility (EPR) law, the Plastic Pollution and Recycling Modernization Act. The trade group cited “widespread confusion and a substantial number of outstanding questions from parties who must register, with what organization they must register, and what products are covered by the law.” The letter said concerning the recycling act, “This law will have a substantial financial impact nationally on businesses throughout the supply chain who sell or distribute products in Oregon.” It also said, “Neither the law nor its contemplated implementation provides any clarity regarding how fees are established and the amounts to be charged.”
Court rejects NSF funding mechanism that would slash research grants. On June 20, the US District Court for the District of Massachusetts vacated a new National Science Foundation (NSF) policy that drastically cuts research funding. The Association of American Universities, joined by 13 research institutions and two other trade groups, filed suit in May challenging the NSF’s 15% Indirect Cost Rate and Policy Notice, which aimed to slash the financing of numerous research grants by placing a 15 percent cap on so-called indirect rates, which cover such overhead as staff salaries, utilities, and lab operations. The plaintiffs argued that the policy was illegal and that it threatened critical work in artificial intelligence, cybersecurity, semiconductors, and other technologies that enhance US manufacturing capacity. On June 20, the court vacated the policy, calling it “invalid, arbitrary and capricious, and contrary to law.” The court also ordered that NSF Director Brian Stone and the NSF “provide written notice of the Order to all affected funding recipients within 72 hours” and then notify the court that they had done so. A similar cap on indirect funding adopted by the Department of Defense was temporarily blocked by the US District Court for the District of Massachusetts on June 17; on June 16, the District of Massachusetts ordered the National Institutes of Health to reinstate more than $1 billion in research grants, deeming their termination “void and illegal.”
Supreme Court aims to provide predictability by narrowing the scope of NEPA review. The Supreme Court’s ruling in Seven County Infrastructure Coalition v. Eagle County marks a significant change in how federal agencies must conduct environmental project reviews under the National Environmental Policy Act.
EPA proposes Renewable Fuel Standards. Signaling Administration support for the biofuel industry and the US farm economy, on June 13 the EPA released its proposed Renewable Fuel Standard (RFS) volumes and percentages standards for 2026 and 2027. The rule is referred to as the “Set 2 Rule,” because it reflects the second rulemaking setting multi-year blending requirements since the statutory mandates for the RFS program expired in 2022. The Renewable Fuel Standard requires refiners and importers to blend biofuels into the nation’s fuel supply or to purchase credits in the form of Renewable Identification Numbers (RINs) from those that do. The proposed 2026 and 2027 mandates are 24.02 and 24.46 billion RINs, respectively, up from 22.33 billion RINs in 2025. Simultaneously with the Set 2 Rule proposal, EPA issued a final rule reducing the 2024 cellulosic biofuel standard to 1.01 billion RINs and a percentage standard of 0.59 percent. Nested within Set 2 Rule’s total renewable fuel volume requirement are proposed mandates for biomass-based diesel, advanced biofuel, cellulosic biofuel, and conventional biofuel. Following several years of advocacy from the biofuels industry, the EPA proposal would substantially raise the 2026 and 2027 mandates for biomass diesel to 7.12 and 7.5 billion RINs, respectively. In addition, in a major policy change for the RFS program, EPA is proposing an “import RIN reduction” for imported renewable fuel and renewable fuel produced domestically from foreign feedstocks. Under the proposed approach, renewable fuel producers and importers will only be eligible to generate 50 percent fewer RINs than can be generated for the same volume of renewable fuel produced domestically using domestic feedstocks. There is also substantial uncertainty regarding the number of small refinery exemption petitions that could be granted for 2026 and 2027. EPA is also considering more than 160 such petitions for prior compliance years that were remanded to the Agency from multiple federal courts. EPA states that it is still determining its policy for small refinery exemptions but expects to finalize and communicate the policy before finalizing the Set 2 Rule. Public comments on the proposed rule may be submitted through August 8, and a virtual public hearing on the proposed rule is scheduled for July 8.
US government announces intent to fund nuclear energy projects. The Trump Administration recently issued four Executive Orders focused on nuclear technologies that, collectively, aim to “unleash the domestic nuclear base.” In addition to streamlining regulatory requirements and environmental reviews, the EOs discuss funding opportunities for companies performing work in the nuclear energy sector, including through procurement contracts, grants, pilot programs, and loans.
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