Fact Check: Trump's 'Golden Share' Gives Him Veto Power Over Key U.S. Steel Decisions
What We Know
Recent disclosures from the U.S. Securities and Exchange Commission indicate that President Donald Trump will control a so-called "golden share" as part of the national security agreement that allowed Japan-based Nippon Steel to acquire U.S. Steel. This provision grants Trump the authority to appoint a board member and influence decisions that impact domestic steel production and competition with foreign producers (AP News). Specifically, the agreement stipulates that certain decisions cannot be made without the written consent of Trump or his designee while he is president. These decisions include significant operational changes such as plant closures, changes in company name or headquarters, and transferring jobs outside 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 over strategically important industries. This arrangement allows the U.S. government to have a say in critical business decisions, effectively granting veto power (NPR).
The reliability of the sources reporting on this matter is high. The Associated Press and NPR are well-established news organizations known for their journalistic integrity. The AP's report provides detailed insights into the SEC filings and the implications of the golden share, while NPR's analysis includes expert commentary from Todd Tucker, a director of industrial policy and trade at the Roosevelt Institute, who explains the historical context and significance of such arrangements (AP News, NPR).
Critically, the White House has clarified that the golden share is not specifically granted to Trump but to the sitting president. However, the specific language in the agreement suggests that Trump will have direct control during his presidency, which raises questions about the potential for future administrations to exert similar influence (AP News).
Conclusion
The claim that Trump's "golden share" gives him veto power over key U.S. Steel decisions is True. The evidence from credible sources indicates that this arrangement allows Trump to influence significant operational decisions at U.S. Steel while he is president. The specific language of the agreement and the nature of the golden share itself support this conclusion.
