U.S. President Donald Trump has been given a special power, called a “golden share,” in a major business deal where Japan’s Nippon Steel bought US Steel for nearly $15 billion. This deal recently became official, making US Steel—an iconic American company—a subsidiary of Nippon Steel.
What Is the “Golden Share”?
The golden share is part of a national security agreement that allows Trump, while he is president, to:
- Appoint a board member to US Steel
- Veto major company decisions that could affect U.S. steel production or competition with foreign steelmakers
This special power is only in Trump’s hands when he is president. If someone else becomes president, the control goes to the U.S. Treasury and Commerce Departments.
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Why Is Trump’s Name in the Agreement?
Even though the White House says the golden share applies to any president, the actual legal documents mention Trump’s name specifically. For example, it says decisions can’t be made “without Donald J. Trump’s written consent” while he is president, or with the Treasury and Commerce Departments’ consent at other times.
What Kind of Decisions Does This Cover?
The golden share gives Trump the power to block:
- Closing or moving US Steel plants
- Reducing promised investments in US Steel
- Changing US Steel’s name or headquarters
- Sending jobs or production overseas
- Buying competing companies
- Decisions related to trade, labor, and sourcing from outside the U.S.
Why Did This Deal Take So Long?
The deal was delayed for over 18 months due to:
- National security concerns
- Opposition from the United Steelworkers Union
- Political pressure, especially in Pennsylvania, where US Steel is based
Initially, Trump and even former President Joe Biden opposed the deal. But Trump later supported it, calling it a “partnership.” The final agreement was made official on June 13.
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With the deal done, Nippon Steel and US Steel together become the 4th largest steel company in the world. Analysts say this deal will help modernize US Steel’s aging plants, as Nippon Steel plans to invest $11 billion in upgrades.
