Fact Check: "Trump can veto major decisions affecting U.S. Steel under the golden share provision."
What We Know
President Donald Trump has been granted a "golden share" in the recent acquisition of U.S. Steel by Japan-based Nippon Steel. This arrangement, part of a national security agreement, allows Trump to exert significant influence over U.S. Steel's operations. Specifically, the provision enables him to appoint a board member and veto decisions that could impact domestic steel production and competition with foreign producers (AP News, NY Times). The agreement stipulates that these powers are retained by the president during their term, reverting to the Treasury and Commerce Departments once a new president takes office (AP News).
The "golden share" allows Trump to veto a range of actions, including:
- Reductions in Nippon Steel's capital commitments.
- Changes to U.S. Steel's name and headquarters.
- Closing or idling U.S. Steel plants.
- Transferring production or jobs outside the U.S.
- Acquiring competing businesses in the U.S.
- Certain decisions regarding trade, labor, and sourcing (NY Times, CNBC).
Analysis
The claim that Trump can veto major decisions affecting U.S. Steel is substantiated by the details of the golden share provision. The arrangement is designed to give the U.S. government, and specifically the sitting president, substantial control over the operations of U.S. Steel, which is significant given the company's role in the domestic steel industry (AP News, NY Times).
The reliability of the sources is high, as they include reputable news organizations such as the Associated Press and The New York Times, known for their journalistic standards and fact-checking processes. Both articles provide consistent information about the powers granted to Trump under the golden share provision, emphasizing the unusual nature of such an arrangement in the context of foreign investment in U.S. companies (AP News, NY Times).
However, it is important to note that while the golden share grants significant power to Trump, it is not a permanent arrangement. The control over these powers will revert to the Treasury and Commerce Departments once Trump is no longer president, which introduces a level of uncertainty regarding the long-term implications of this agreement (AP News).
Conclusion
Verdict: True
The claim that Trump can veto major decisions affecting U.S. Steel under the golden share provision is accurate. The golden share grants him substantial control over the company's operations during his presidency, allowing him to influence key decisions that could impact domestic steel production and competition. The arrangement is unprecedented and reflects a significant shift in how foreign investments in U.S. companies can be structured, particularly concerning national security.
