Recent negotiations have led to an agreement between the Trump administration and Nippon Steel, enabling unprecedented governmental influence over U.S. Steel.
**Trump Secures Unique Control Over U.S. Steel Through ‘Golden Share’ Deal**
**Trump Secures Unique Control Over U.S. Steel Through ‘Golden Share’ Deal**
The deal gives the U.S. government unprecedented authority over a major private company, raising questions about foreign investment regulations.
In a groundbreaking agreement, the Trump administration has managed to secure a “golden share” deal with Japan's Nippon Steel, providing the U.S. government with extraordinary control over U.S. Steel. This arrangement, developed during extensive discussions held over two nights in June 2025, could signify a pivotal shift in how foreign investments operate within the United States.
Nippon Steel's intention to acquire U.S. Steel, which has faced significant operational struggles, was initially hindered by the Biden administration due to national security apprehensions. In a surprising turn, Nippon Steel conceded to President Trump's insistence on a deal that would grant the U.S. government substantial control over the company’s actions, ensuring oversight that would transcend the current administration.
The terms negotiated stipulate that the U.S. government will hold a permanent share of preferred stock, termed class G, granting the president or a designated official the authority to veto an array of company transactions. This unprecedented arrangement not only places significant power in the hands of government officials but also raises critical questions about the implications for future foreign investments.
While Nippon Steel initially proposed that the U.S. government’s influence expire after a few years, Trump administration officials, under the leadership of Commerce Secretary Howard Lutnick, insisted on a perpetual arrangement. As a result, U.S. Steel’s corporate charter will outline essential operations that cannot proceed without the necessary governmental approvals.
This deal marks a significant move in the relationship between foreign enterprise and U.S. national interests, potentially setting a new precedent for how such transactions may be structured in the future.
Nippon Steel's intention to acquire U.S. Steel, which has faced significant operational struggles, was initially hindered by the Biden administration due to national security apprehensions. In a surprising turn, Nippon Steel conceded to President Trump's insistence on a deal that would grant the U.S. government substantial control over the company’s actions, ensuring oversight that would transcend the current administration.
The terms negotiated stipulate that the U.S. government will hold a permanent share of preferred stock, termed class G, granting the president or a designated official the authority to veto an array of company transactions. This unprecedented arrangement not only places significant power in the hands of government officials but also raises critical questions about the implications for future foreign investments.
While Nippon Steel initially proposed that the U.S. government’s influence expire after a few years, Trump administration officials, under the leadership of Commerce Secretary Howard Lutnick, insisted on a perpetual arrangement. As a result, U.S. Steel’s corporate charter will outline essential operations that cannot proceed without the necessary governmental approvals.
This deal marks a significant move in the relationship between foreign enterprise and U.S. national interests, potentially setting a new precedent for how such transactions may be structured in the future.
