Fact Check: Trump's Approval is Needed for Key Decisions Affecting U.S. Steel's Future
What We Know
Recent developments surrounding the acquisition of U.S. Steel by Japan-based Nippon Steel have revealed that President Donald Trump holds a significant degree of control over the company through a provision known as a "golden share." This arrangement was established as part of a national security agreement that allowed the buyout to proceed after an extended period of scrutiny and opposition due to national security concerns (AP News).
The golden share grants Trump the authority to appoint a board member and to have a say in crucial decisions that impact domestic steel production and competition with foreign producers. Specifically, the agreement stipulates that certain decisions cannot be made without Trump's written consent while he is in office. These decisions include changes to U.S. Steel's name, headquarters, and operational strategies, as well as significant financial commitments (CNBC).
Analysis
The claim that Trump's approval is necessary for key decisions affecting U.S. Steel's future is substantiated by the details of the golden share arrangement. According to the amended corporate charter filed with the U.S. Securities and Exchange Commission (SEC), Trump retains veto power over several critical business decisions while he is president. This includes decisions related to production, labor, and capital investments (AP News, CNBC).
The provision is designed to address national security concerns and ensures that the U.S. government retains a level of oversight over a significant American industrial asset. Critics, including labor leaders, have expressed concerns about the implications of such concentrated power in the hands of a single individual, suggesting that it could lead to conflicts of interest or decisions that prioritize political considerations over corporate health (CNBC).
While the White House has clarified that the golden share is not a personal grant to Trump but rather a power associated with the presidency, the specific language in the agreement highlights Trump's unique control during his term (AP News). This distinction is crucial as it underscores the unprecedented nature of this arrangement.
Conclusion
The claim that Trump's approval is needed for key decisions affecting U.S. Steel's future is True. The golden share arrangement explicitly grants Trump veto power over significant corporate decisions while he is in office, thereby necessitating his approval for actions that could impact the company and, by extension, the U.S. steel industry.
