Trump gains special control in US steel deal

President Donald Trump has secured a unique role in the recent purchase of U.S. Steel by Japan’s Nippon Steel. This $14.9 billion deal, finalized after months of talks, includes a “golden share” that gives Trump significant influence over the company’s decisions. This special power allows him to appoint a board member and have a say in choices that impact America’s steel production and competition with foreign companies.

The golden share is part of a national security agreement that ensures U.S. Steel, an iconic American company, continues to support the country’s needs. For example, Trump can veto certain decisions to protect local jobs and keep the company’s headquarters in Pittsburgh. However, this authority will shift to U.S. government agencies under future presidents, ensuring long-term oversight.

Nippon Steel agreed to these terms to gain approval for the buyout, which faced opposition from some U.S. lawmakers and unions worried about foreign ownership. The deal also includes commitments to invest in U.S. Steel’s facilities, boosting their ability to produce steel domestically. While this setup is rare in the U.S., it’s more common in other countries where governments use golden shares to protect key industries.

Some experts warn it could make foreign investors hesitant about future U.S. deals, fearing government interference. Still, Nippon Steel’s leaders say they’re confident the arrangement won’t limit their management freedom. This deal shows Trump’s push to balance foreign investment with American interests, a strategy that may shape other industries like tech in the future.