Even after being taken over by a Japanese company, U.S. Steel will still be controlled by the United States through President Donald Trump or U.S. agencies under future presidents. Trump will control the so-called “golden share” that’s part of the national security agreement under which he allowed Japan-based Nippon Steel to buy out iconic American steelmaker U.S. Steel, according to disclosures with the U.S. Securities and Exchange Commission (SEC).
A “golden share” is a type of share that gives its holder special veto power over certain corporate decisions, even if they hold only a minority of the company’s shares. In the context of U.S. Steel, the golden share became significant after the company’s acquisition by Japan’s Nippon Steel.
READ: Trump’s tariffs are undermining the U.S. economy (May 17, 2025)
The provision gives President Trump the power to appoint a board member and have a say in company decisions that affect domestic steel production and competition with overseas producers.
The U.S. government, concerned about national security and the strategic importance of steel production, signaled it might intervene in the deal. Although there wasn’t a literal golden share issued, the concept was discussed as a way for the government to maintain control or influence. The idea was that a golden share held by the U.S. government or a designated entity could give it veto power over decisions that affect national security, including ownership changes or shutting down certain operations.
Under the provision, Trump — or someone he designates — controls that decision-making power while he is president. However, control over those powers reverts to the Treasury Department and the Commerce Department when anyone else is president, according to the filings.
The White House responded in a statement that the share is “not granted to Trump specifically, but to whoever the president is” when asked why Trump will directly control the decision-making and why it goes to the Treasury and Commerce departments under future presidents.
READ: Trump administration cancels over $12 billion in healthcare grants (March 27, 2025)
The issuance of a golden share in U.S. Steel marks a significant shift in how the U.S. government approaches foreign investment in critical industries. By securing this special share, the government has ensured it retains veto power over key decisions that could impact national security, industrial capacity, and American jobs. This move reflects growing concerns about maintaining domestic control over strategic assets, especially in sectors like steel that are vital to defense and infrastructure.
For U.S. Steel, this arrangement allows the company to move forward with much-needed foreign investment while staying anchored in the United States. It offers a balance between globalization and national interest, signaling that the U.S. is open to foreign partnerships, but only under conditions that protect its strategic priorities.
For the federal government, the golden share sets a precedent. It could become a model for future deals involving critical infrastructure or defense-related industries. It also reflects a bipartisan shift toward more active oversight of foreign acquisitions, especially from countries with major industrial or geopolitical stakes.
This agreement reinforces U.S. sovereignty over vital economic assets, while still allowing private companies to pursue global opportunities, under the watchful eye of the government.