Fact Check: Trump's 'Golden Share' Gives Him Veto Power Over Critical U.S. Steel Decisions
What We Know
The claim that President Donald Trump has a "golden share" in U.S. Steel, which grants him veto power over critical company decisions, is based on a recent acquisition by Japan-based Nippon Steel. According to AP News, Trump will control this golden share as part of a national security agreement that allows Nippon Steel to buy U.S. Steel. This provision enables Trump, or someone he designates, to have a say in decisions that affect domestic steel production and competition with overseas producers.
The golden share specifically allows Trump to appoint a board member and veto certain actions, such as closing plants, transferring jobs outside the U.S., or altering U.S. Steel's name and headquarters. However, this power is limited to his term as president; once he leaves office, control will revert to the Treasury and Commerce Departments, as noted in the same report.
Nippon Steel's acquisition, valued at nearly $15 billion, was finalized amid national security concerns and commitments to invest $11 billion to upgrade U.S. Steel facilities. The agreement aims to ensure that Nippon Steel adheres to its promises, including maintaining jobs and production in the U.S. (NPR).
Analysis
The concept of a "golden share" is not unique to this situation; it has been used globally to maintain government oversight in strategic industries. As explained by Todd Tucker, an industrial policy expert, the golden share allows the government to have a say in significant corporate decisions, effectively granting a form of veto power (NPR).
However, the reliability of the sources is crucial in assessing the validity of the claim. The AP News and NPR are reputable news organizations with a history of fact-checking and journalistic integrity. Their reports are corroborated by official disclosures from the U.S. Securities and Exchange Commission, which lend credibility to the assertion that Trump has this power.
While the golden share does provide Trump with significant influence over U.S. Steel, it is essential to note that this power is not absolute. The control reverts to government departments after his presidency, which means that the long-term implications of this arrangement are uncertain. Moreover, the White House clarified that the golden share is not personally granted to Trump but is tied to the office of the president (AP News).
Conclusion
The claim that Trump's golden share gives him veto power over critical U.S. Steel decisions is Partially True. While it is accurate that Trump has significant influence over specific decisions during his presidency, this power is not permanent and will revert to government oversight once he leaves office. Therefore, the assertion lacks context regarding the temporary nature of this authority.
