Trump administration offers some details of how it would control US
Steel, but union raises concerns
[June 16, 2025] By
JOSH BOAK and MARC LEVY
CALGARY, Alberta (AP) — President Donald Trump would have unique
influence over the operations of U.S. Steel under the terms of what the
White House calls an “investment” being made by Japan-based Nippon Steel
in the iconic American steelmaker.
Administration officials over the past few days provided additional
insight into the “golden share” arrangement that the federal government
made as a condition for supporting the deal.
The Pittsburgh-based steel maker and Nippon Steel plan $11 billion in
new investments by 2028 after indicating that they plan to move forward
with the deal under the terms of a national security agreement that has
the White House's approval.
The White House has described the deal as a “partnership” and an
“investment” by Nippon Steel in U.S. Steel, although Nippon Steel has
never backed off its stated intention of buying and controlling U.S.
Steel as a wholly owned subsidiary in a nearly $15 billion offer it
originally made in late 2023.
Commerce Secretary Howard Lutnick posted on social media on Saturday how
the “golden share” to be held by the president would operate, revealing
that the White House is willing to insert itself aggressively into a
private company's affairs even as it has simultaneously pledged to strip
away government regulations so businesses can expand.
Under the government's terms, it would be impossible without Trump's
consent to relocate U.S. Steel's headquarters from Pittsburgh, change
the name of the company, “transfer production or jobs outside the United
States,” shutter factories, or reincorporate the business overseas,
among other powers held by the president.
Lutnick also said it would require presidential approval to reduce or
delay $14 billion in planned investments.
“The Golden Share held by the United States in U.S. Steel has powerful
terms that directly benefit and protect America, Pennsylvania, the great
steelworkers of U.S. Steel, and U.S. manufacturers that will have
massively expanded access to domestically produced steel,” Lutnick
posted on X.
That $14 billion figure is higher than what the companies disclosed on
Friday when Trump created a pathway for the investment with an executive
order based on the terms of the national security agreement being
accepted.
Lawmakers from Pennsylvania say the higher figure includes the cost of
an electric arc furnace — a more modern steel mill that melts down scrap
— that Nippon Steel wants to build in the U.S., bringing the value of
the deal to at least $28 billion.
The president has the authority to name one of the corporate board’s
independent three directors and veto power over the other two choices,
according to a person familiar with the terms of the agreement who
insisted on anonymity to discuss them. The details of the board
structure were first reported by The New York Times.
[to top of second column] |
 Details of the agreement emerged as
Trump was traveling to Alberta in Canada for the Group of Seven
summit.
Still, the full terms remain somewhat unclear. The
companies have not made public the full terms of Nippon Steel's
acquisition of U.S. Steel or the national security agreement with
the federal government.
On Sunday, the United Steelworkers, the labor union representing
U.S. Steel employees, posted a letter raising questions about the
deal forged by Trump, who during his run for the presidency had
pledged to block Nippon Steel's acquisition of U.S. Steel.
The union said it was “disappointed” that Trump “has reversed
course” and raised basic questions about the ownership structure of
U.S. Steel.
“Neither the government nor the companies have publicly identified
what all the terms of the proposed transaction are,” the letter
said. “Our labor agreement expires next year, on September 1, 2026,
and the USW and its members are prepared to engage the new owners"
of U.S. Steel "to obtain a fair contract.”
If Trump has as much control of U.S. Steel as he has claimed, that
could put him in the delicate position of negotiating the salary and
benefits of unionized steelworkers going into midterm elections.
As president, Joe Biden used his authority to block Nippon Steel's
acquisition of U.S. Steel on his way out of the White House after a
review by the Committee on Foreign Investment in the United States.
After he was elected, Trump expressed openness to working out an
arrangement and ordered another review by the committee. That's when
the idea of the “golden share” emerged as a way to resolve national
security concerns and protect American interests in domestic steel
production.
As it sought to win over American officials, Nippon Steel made a
series of commitments.
It gradually increased the amount of money it was pledging to invest
in U.S. Steel, promised to maintain U.S. Steel’s headquarters in
Pittsburgh, put U.S. Steel under a board with a majority of American
citizens and keep plants operating.
It also said it would protect the interests of U.S. Steel in trade
matters and it wouldn’t import steel slabs that would compete with
U.S. Steel’s blast furnaces in Pennsylvania and Indiana.
___
Levy reported from Harrisburg, Pennsylvania.
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