Fact Check: Trump Controls Golden Share in $15 Billion U.S. Steel Buyout
What We Know
The claim that "Trump controls golden share in $15 billion U.S. Steel buyout" stems from recent developments regarding the acquisition of U.S. Steel by Japan-based Nippon Steel. As part of a national security agreement, President Donald Trump has been granted a "golden share" that allows him to exert significant influence over U.S. Steel's operations while he is in office. This provision enables Trump, or a designee, to appoint a board member and veto decisions that could impact domestic steel production and competition with foreign entities (AP News, New York Times).
The acquisition, valued at nearly $15 billion, was finalized recently, making U.S. Steel a wholly owned subsidiary of Nippon Steel. The agreement was reached after prolonged negotiations that included addressing national security concerns raised by the Biden administration (AP News, CNBC). The golden share arrangement is designed to ensure that U.S. Steel cannot make critical decisions—such as transferring jobs or production outside the U.S.—without presidential approval (New York Times).
Analysis
The assertion that Trump controls the golden share is accurate in the context of his tenure as president. The provision specifically states that the authority associated with the golden share is granted to Trump while he is in office, and it reverts to the Treasury and Commerce Departments when a new president takes office (AP News). This means that while Trump has significant control over U.S. Steel during his presidency, this power is not permanent and does not extend beyond his term.
The reliability of the sources reporting on this matter is generally high. The Associated Press and The New York Times are established news organizations known for their journalistic standards. However, it is essential to note that the framing of the golden share as a "control" mechanism can be interpreted in various ways. While Trump does have veto power and the ability to influence decisions, the arrangement is also described as a national security measure aimed at protecting American interests in the steel industry (New York Times, CNBC).
Critics, including labor unions like the United Steelworkers, have expressed concerns about the implications of this deal, suggesting that it undermines the future of American steelmaking (New York Times). The complexity of the agreement and its potential long-term effects on U.S. Steel and the broader steel industry warrant careful consideration.
Conclusion
The claim that "Trump controls golden share in $15 billion U.S. Steel buyout" is Partially True. While it is accurate that Trump has been granted significant control over U.S. Steel through the golden share during his presidency, this control is not permanent and will revert to government agencies under future administrations. The arrangement reflects a blend of national security interests and corporate governance, making it a nuanced issue that extends beyond simple control.
