Trump Gains Unprecedented Control Over U.S. Steel with "Golden Share" Deal

The recent agreement between Nippon Steel and the Trump Administration includes a "golden share" provision, allowing the U.S. government extensive influence over U.S. Steel's operations in a way that may transform the landscape of foreign investments.

In a groundbreaking move that could reshape the dynamics of foreign investments in America, Japan's Nippon Steel has struck a deal with the Trump Administration, granting the U.S. government a "golden share" in U.S. Steel. This arrangement confers an extraordinary level of control over the company, allowing President Trump and future presidents to hold significant sway over its board and operational decisions.

Details emerged from late-night negotiations that unfolded between Nippon Steel executives and U.S. officials earlier this week. Nippon Steel, which has been vying for a takeover of the beleaguered U.S. Steel since late 2023, initially faced opposition from the Biden Administration due to national security issues. However, in a pivot to facilitate the acquisition, Nippon Steel accepted the Trump Administration's demand for a permanent stake in the company.

While Nippon Steel had proposed a temporary influence, likely to last only through Trump's term, Commerce officials insisted that the "golden share" must extend indefinitely. Under the national security agreement ratified on Friday, the U.S. government will hold a preferred stock share designated as class G—indicating its golden status. As per the revised charter, U.S. Steel will be limited in its activities, requiring Presidential approval for nearly a dozen specific actions going forward.

This unprecedented agreement suggests a potential shift in the relationship between foreign corporations and U.S. governance, raising questions about sovereignty, corporate governance, and the future of foreign investments in critical sectors of the American economy. As this deal continues to develop, its implications for U.S. economic policy remain a focal point for analysts and policymakers alike.