By Kaori Kaneko, Kantaro Komiya and Alexandra Alper TOKYO/WASHINGTON (Reuters) -The U.S. government will have veto power over key decisions relating to U.S. Steel, as part of a deal with Nippon Steel that would approve the Japanese firm's bid for the well-known American steel company,

Gary Mayor Eddie Melton has been supportive of a deal between Nippon and U.S. Steel for months, citing how it would benefit Gary Works. In August, it was announced that Nippon Steel would invest $300 million into the local facility. A Nippon executive later said the company would invest $1 billion into Gary Works.

President Donald Trump said he will increase tariffs on steel and aluminum to 50% from 25%, effective Wednesday, as a way to help protect American workers.