Trump Gains Control Over U.S. Steel “Golden Share” \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ President Trump will directly control a powerful “golden share” included in the national security agreement approving Nippon Steel’s $15 billion acquisition of U.S. Steel. The provision gives him veto power over key decisions impacting U.S. steel production. Under other presidents, this authority transfers to the Treasury and Commerce departments.
Quick Looks
- Golden share powers: Trump or his designee can veto decisions on U.S. steel production and investments.
- National security clause: Powers revert to Treasury and Commerce when Trump is no longer president.
- Nippon Steel deal: Finalized June 13; includes $11 billion in U.S. investments.
Deep Look
The $15 billion acquisition of U.S. Steel by Japan’s Nippon Steel has thrust an unusual legal provision into the spotlight—one that grants President Donald Trump sweeping control over decisions affecting the future of one of America’s most iconic industrial companies. At the heart of this arrangement is a so-called “golden share,” a powerful national security mechanism that effectively gives Trump veto authority over key aspects of U.S. Steel’s operations as long as he holds the presidency.
Disclosed in filings with the U.S. Securities and Exchange Commission, the provision is embedded within a national security agreement that allowed the controversial foreign acquisition to proceed. The agreement, finalized on June 13, is between Nippon Steel, its U.S. subsidiary, and the federal government, represented by the departments of Commerce and Treasury. Though the full document remains confidential, summaries released by U.S. Steel and public records spell out the reach of the golden share.
At its core, the golden share grants the president the ability to appoint a director to the board and block certain high-impact decisions. These include closing U.S. Steel plants, relocating production abroad, reducing capital investments, changing the company’s name or headquarters, and acquiring U.S. competitors. The purpose is to ensure that the merged company’s operations do not threaten U.S. industrial capacity or national security.
But what sets this golden share apart is that it is specifically tied to Donald Trump by name.
According to the legal text disclosed in securities filings, no such decisions can be made “without … at any time when Donald J. Trump is serving as President of the United States of America, the written consent of Donald J. Trump or President Trump’s Designee.” In contrast, during other presidencies, decision-making power shifts to the “CMAs”—contractual management authorities comprising the Treasury and Commerce departments.
This naming of Trump in a federal contract is highly unusual, if not unprecedented. While the White House has attempted to downplay the specificity of the provision—saying it applies to whoever is president—the wording leaves no doubt that Trump will wield direct control while in office.
The golden share emerged from months of intense negotiations and political maneuvering. Originally, Trump, like President Biden, opposed the Nippon Steel takeover, citing concerns about foreign control of a major American steelmaker—particularly in Pennsylvania, where U.S. Steel is headquartered and where domestic steel remains a hot-button electoral issue.
But after returning to the White House, Trump reversed course and recast the acquisition as a “partnership” rather than a sellout. In exchange for dropping opposition, his administration demanded ironclad protections, including an $11 billion investment pledge from Nippon Steel and the golden share to ensure direct White House oversight.
These moves helped secure the deal’s final approval despite opposition from labor unions and national security hawks. Analysts say the combination of Nippon Steel’s technological expertise and U.S. Steel’s legacy infrastructure could produce one of the world’s most competitive steel manufacturers. The merged company now ranks as the fourth-largest globally, behind only Chinese industrial giants.
Still, the inclusion of the golden share has sparked concerns about the politicization of corporate governance and presidential overreach. By tying key business decisions to Trump personally, the agreement raises questions about the balance of public interest, private ownership, and political influence.
Critics argue that such centralized power could blur the line between economic policy and political loyalty—particularly if Trump uses his veto rights to influence business strategies, labor decisions, or international trade policy. Others counter that the measure is a prudent safeguard in an era of rising geopolitical tensions and industrial competition with China.
What’s clear is that the golden share’s significance will outlast the transaction itself. While Trump’s name appears in the current language, the legal structure allows for future presidents to inherit the same powers, albeit without personal naming. Whether they will assert that authority as strongly remains to be seen.
For now, Trump has achieved something rare in American business and governance—a sitting president named directly in a binding commercial agreement, empowered to personally dictate the strategic course of a once-independent American corporate icon.
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