Former President Donald Trump would gain unprecedented control over U.S. Steel through a special “golden share” arrangement tied to Japan-based Nippon Steel’s acquisition of the American steel giant. While the White House has labeled the deal an “investment” rather than a full buyout, Nippon Steel’s goal remains to fully acquire U.S. Steel as a wholly owned subsidiary.
The agreement, which was supported by a national security review and executive order under Trump, gives the federal government — and Trump specifically — unique authority over major corporate decisions affecting U.S. Steel.
Golden Share Grants President Sweeping Control Over U.S. Steel’s Strategic Business Decisions
Commerce Secretary Howard Lutnick detailed the powers attached to the golden share, which essentially make any major operational changes at U.S. Steel contingent on presidential approval. These include restrictions on moving the company’s headquarters from Pittsburgh, renaming the company, moving production or jobs overseas, or shutting down factories.
The government also holds veto power over changes in investment schedules, notably a $14 billion investment package, and has influence over board appointments, including the right to name one director and veto the others.
Trump’s Golden Share Deal Gives White House Unprecedented Control Over U.S. Steel OperationsThe investment deal includes at least $14 billion in commitments, though some lawmakers say the true value could reach $28 billion with additional infrastructure projects, such as a new electric arc furnace in the U.S.
The White House has pitched the agreement as a way to preserve American jobs, strengthen domestic manufacturing, and ensure that U.S.-produced steel continues to serve American industry. Nippon Steel has also promised to uphold U.S. Steel’s identity by maintaining its Pittsburgh headquarters and avoiding harmful steel imports.
Union Backlash, Political Risks, and Unanswered Questions Surround Trump’s Golden Share Strategy
Despite these assurances, the United Steelworkers union has expressed skepticism and disappointment, particularly in Trump’s reversal from earlier promises to block the acquisition. In a letter, the union questioned the transparency and full scope of the deal, noting that the labor agreement with U.S. Steel expires in 2026.
The union is preparing to negotiate with Nippon Steel’s leadership, which could place Trump — if he retains his role — in a politically sensitive position regarding worker contracts and benefits during the midterm election cycle.
The idea of the golden share emerged after Biden blocked the acquisition on national security grounds before leaving office. Upon taking power, Trump reopened the review and crafted a compromise meant to resolve security concerns while facilitating the investment.
The deal appears to have succeeded in attracting new capital while maintaining domestic oversight. However, full terms of the agreement remain undisclosed, leaving questions about the long-term implications for corporate governance, worker rights, and U.S. industrial policy.
