Trump already exercises his authority “Golden Share” in Us Steel, going beyond the plans of the company
Just when Us Steel thought that ink had dried up on its new future with Japanese Japan, the company met with a political reality verification: the administration of President Donald Trump and his new authority “Golden Share”.
The gold share – essentially a veto on certain corporate measures – was a condition for the approval of the White House of the acquisition of Nippon Steel at $ 14.1 billion from US Steel in June. The president used this power to stop a planned closure of the Granite City factory, ill., The Wall Street Journal Friday reported for the first time.
Two weeks ago, US Steel informed the Granite City factory and its 800 workers that operations would cease in November. The company planned to pay the employees, despite the closure of steel production.
But the secretary of commerce, Howard Lunick, learned the plan and called the director general of the US Steel, Dave Burritt, telling the executive that he would not allow operations to be stopped, said sources Newspaper. Lutnick added that Trump would use his Golden Share Authority.
Lutnick described US Steel’s plan to pay employees despite the factory that does not work as “absurd”, in a recent CNBC interview.
In a few days, the Aciérien reversed the course, saying to Newspaper “Our goal was to maintain flexibility, and we are delighted to have found a solution to continue consumption of City granite plate.”
The White House, the trade in departure and US Steel did not immediately respond to Fortune for comment.
Union leaders have opposed the acquisition of Nippon Steel, warning that the company would close the interior factories and rather import steel abroad to other places. But the intervention of Trump companies prevented this.
A national security agreement between the government and Japanese Steel gives Trump authority on a series of changes, factory closings and relocations to wage changes and operational changes in large tickets.
He marked another development in government control over private industrial decisions.
NVIDIA and AMD agreed to pay the administration 15% of their flea sales sold to China. Other examples include the $ 8.9 billion agreement from Trump with Intel, making the federal government the main shareholder of the flea manufacturer and an agreement with the MP documents which make the Ministry of Defense the main shareholder of the main miner in rare American land.
Some analysts warn that investors can now have to take into account political risks ranging from regulatory intervention to former executives.
But the Golden Share concept is not completely new. Governments of the United Kingdom, Brazil and China have long used similar arrangements to maintain influence in private sectors, such as defense, aviation and infrastructure.
But the American move is remarkable for the pure scope: although the United States’s foreign investment committee previously imposed mergers security conditions, the Trump agreement goes further, granting presidential surveillance of major operational decisions.
The intervention of the city of granite can serve as temporary stay for employees and the local economy.
“We need a future,” said Craig McKey, president of United Steelworkers Local 1899 in Granite City The Wall Street Journal. “Whatever they give us, we are ready to do the work.”
https://fortune.com/img-assets/wp-content/uploads/2025/09/GettyImages-2235539595-e1758407641575.jpg?resize=1200,600
About The Author
