Fact Check: "Trump's approval required for key decisions affecting U.S. Steel's future."
What We Know
Recent reports confirm that President Donald Trump has been granted a "golden share" as part of the national security agreement related to the acquisition of U.S. Steel by Japan-based Nippon Steel. This arrangement allows Trump to have significant control over key decisions affecting the company. Specifically, the agreement stipulates that certain actions cannot be undertaken without the written consent of Trump or his designee while he is in office. These actions include transferring production or jobs outside the U.S., closing or idling plants, and making changes to U.S. Steel's name or headquarters (AP News, New York Times).
The golden share arrangement was established to address national security concerns that had previously stalled the acquisition. This provision is unique in that it provides the president with the authority to appoint a board member and exert veto power over a wide array of company actions, effectively giving the president a permanent stake in U.S. Steel's governance (CSIS, Manufacturing Dive).
Analysis
The claim that Trump's approval is required for key decisions affecting U.S. Steel's future is substantiated by the details of the golden share agreement. The provision explicitly states that significant corporate actions cannot proceed without the consent of Trump or his designated representative while he is president. This arrangement has been described as unprecedented in the context of foreign investments in American companies, indicating a significant shift in how such acquisitions are managed (New York Times, CNBC).
Critically, the source of this information is credible, with major news outlets like the Associated Press and The New York Times providing detailed accounts of the agreement. These sources have a reputation for thorough reporting and fact-checking, lending reliability to the claims made regarding the golden share's implications for U.S. Steel's governance. Additionally, the involvement of government entities such as the Commerce and Treasury Departments in negotiating this deal further supports the legitimacy of the claims (AP News, Manufacturing Dive).
Conclusion
The claim that Trump's approval is required for key decisions affecting U.S. Steel's future is True. The golden share arrangement explicitly grants the president control over critical corporate decisions, which cannot be made without his consent while he is in office. This unprecedented level of control reflects a significant shift in the governance of foreign investments in U.S. companies, particularly in sectors deemed vital to national security.
Sources
- Trump gets 'golden share' power in US Steel buyout
- ‘Golden Share’ in U.S. Steel Gives Trump Extraordinary Control
- Understanding Trump's Decision to Approve the Nippon Steel Deal - CSIS
- Trump approves US Steel-Nippon merger | Manufacturing Dive
- Trump wields sweeping veto power over U.S. Steel with 'golden share'
