Fact Check: Trump controls a 'golden share' in U.S. Steel's acquisition by Nippon Steel.

Fact Check: Trump Controls a 'Golden Share' in U.S. Steel's Acquisition by Nippon Steel

What We Know

Recent disclosures indicate that President Donald Trump will control a "golden share" as part of a national security agreement related to the acquisition of U.S. Steel by Japan-based Nippon Steel. This arrangement allows Trump to appoint a board member and influence decisions affecting domestic steel production and competition with foreign producers (AP News). The golden share grants the president or a designated representative veto power over key company actions, including plant closures, job relocations, and significant changes in capital commitments (New York Times).

The agreement, which became effective on June 13, 2025, was established after prolonged negotiations that addressed national security concerns raised during the acquisition process. Nippon Steel's nearly $15 billion buyout of U.S. Steel was finalized after these terms were agreed upon, making U.S. Steel a wholly owned subsidiary of Nippon Steel (Washington Post).

Analysis

The claim that Trump controls a "golden share" is substantiated by multiple reputable sources. The arrangement is described as unprecedented, granting the U.S. government significant influence over a foreign-owned American company. This type of share typically allows the holder to block certain corporate actions without affecting the economic interests of other shareholders (NPR).

Critics have raised concerns about the implications of such an arrangement, suggesting it may set a precedent for government control over private enterprises, especially in industries deemed critical to national security (Reuters). The golden share is characterized as "noneconomic," meaning it does not provide a financial stake but rather governance rights, which some experts view as a significant shift in how foreign investments are managed in the U.S. (New York Times).

The reliability of the sources is high, with major news organizations like the Associated Press, New York Times, and Washington Post providing detailed accounts of the agreement. These outlets have established reputations for journalistic integrity and fact-checking, making their reports credible.

Conclusion

The claim that Trump controls a "golden share" in U.S. Steel's acquisition by Nippon Steel is True. The evidence from multiple credible sources confirms that this arrangement gives Trump, as president, significant control over the company’s operations and decisions, particularly those impacting national security. The unique nature of this agreement raises important questions about the future of foreign investment in the U.S. and the extent of presidential power in corporate governance.