Fact Check: Trump controls a 'golden share' in U.S. Steel's $15 billion buyout.

Fact Check: "Trump controls a 'golden share' in U.S. Steel's $15 billion buyout"

What We Know

The claim that Donald Trump controls a "golden share" in the $15 billion buyout of U.S. Steel by Nippon Steel is based on a national security agreement that allows the president significant influence over the company. According to AP News, the "golden share" provision grants Trump the authority to appoint a board member and veto certain company decisions that could impact domestic steel production and competition. This arrangement is specific to Trump while he is in office, and the powers revert to the Treasury and Commerce Departments when a new president takes office.

The agreement was finalized as part of the acquisition, which had faced delays due to national security concerns. Nippon Steel's buyout of U.S. Steel aims to enhance the latter's operations and technology, with commitments to invest $11 billion in upgrades (AP News, New York Times). The "golden share" allows Trump to exert control over decisions such as relocating production, closing plants, or altering the company's name, among others (New York Times).

Analysis

The claim is partially true. While it is accurate that Trump has control over a "golden share" in U.S. Steel, the nature of this control is nuanced. The provision is not a personal stake granted solely to Trump but is tied to the presidency itself. As noted by AP News, the control is designated to whoever occupies the presidential office at the time. This means that while Trump currently holds this power, it is not a permanent or personal asset; it is a function of his role as president.

The reliability of the sources is generally strong, with both AP News and the New York Times being reputable news organizations. However, the framing of the "golden share" as a personal control mechanism may lead to misunderstandings about its implications. The New York Times emphasizes that this arrangement could set a precedent for future foreign investments in the U.S., indicating a significant shift in how national security concerns are addressed in corporate acquisitions.

Moreover, the agreement's details, which have not been fully disclosed to the public, raise questions about transparency and the extent of the powers granted. The PublicSource article highlights that the wording of the agreement specifically mentions Trump, which could imply a unique arrangement, but it also reinforces that this power is not transferable to future presidents.

Conclusion

The claim that Trump controls a "golden share" in U.S. Steel's buyout is partially true. While he does have significant control over certain decisions related to the company through this provision, it is essential to recognize that this control is tied to his presidency rather than being a personal stake. The arrangement reflects broader implications for foreign investments in the U.S. and raises concerns about the potential for government overreach in corporate governance.

Fact Check: Trump controls a 'golden share' in U.S. Steel's $15 billion buyout.