Fact Check: Trump controls golden share in U.S. Steel deal with Nippon Steel.

Fact Check: Trump Controls Golden Share in U.S. Steel Deal with Nippon Steel

What We Know

The claim that "Trump controls a golden share in the U.S. Steel deal with Nippon Steel" is substantiated by multiple sources. According to a report by the New York Times, Nippon Steel agreed to a unique arrangement that grants the U.S. government a "golden share," which provides significant influence over U.S. Steel. This arrangement allows the President, currently Donald Trump, to have a permanent stake in U.S. Steel, including veto power over various corporate actions such as relocating jobs or closing plants.

The deal was finalized after extensive negotiations, with the U.S. government retaining a preferred stock share, termed class G, which cannot be sold or transferred by future presidents. This "golden share" arrangement is unprecedented in the context of foreign investments and grants the U.S. government unusual control over a major American company (NPR, AP News).

Analysis

The evidence supporting the claim is robust, with multiple credible sources confirming the existence and terms of the "golden share." The Washington Post reported that the arrangement is part of a national security agreement that allows the U.S. to exert control over U.S. Steel's operations. This includes the ability to appoint a board member and approve or reject significant corporate decisions, which is a significant expansion of governmental influence in private enterprise.

Critically, the reliability of these sources is high. The New York Times and NPR are well-respected news organizations with a history of thorough reporting. The Associated Press also has a strong reputation for factual reporting. However, it is important to note that while the arrangement is framed as a protective measure for national security, some experts, like Aaron Bartnick from the Biden administration, have expressed skepticism about the necessity and implications of such a stake (NPR).

The concept of a "golden share" is not new and has been used in other countries to maintain government influence over strategic industries. However, the extent of control granted to the U.S. government in this case is notable and raises questions about the future of foreign investment in the U.S. steel industry (NPR, CBS News).

Conclusion

The claim that Trump controls a golden share in the U.S. Steel deal with Nippon Steel is True. The arrangement provides the President with significant control over U.S. Steel, including the power to influence corporate governance and operations. This unprecedented level of control reflects a broader trend of increasing government involvement in private enterprises, particularly in industries deemed critical to national security.