Former President Trump's administration intervened to prevent the closure of a U.S. Steel plant in Granite City, Illinois, leveraging newly acquired 'golden share' rights. This unprecedented move utilized powers granted during the $14.1 billion acquisition of U.S. Steel by Japan's Nippon Steel in June 2024. Initially, nearly 800 workers faced potential job losses in November, though U.S. Steel had pledged continued compensation. However, following a warning from then-Commerce Secretary Howard Lutnick to U.S. Steel CEO Dave Burritt, the company reversed its decision, committing to keeping the plant operational and continuing the production of sheet steel from slabs.
This action marked Trump's first use of the 'golden share' provision, giving the White House veto power over key decisions affecting U.S. Steel, including plant closures and shifts in production. A spokesperson for U.S. Steel confirmed the continuation of slab supply to the Granite City facility, emphasizing their commitment to maintaining operational flexibility. The intervention underscores the increasing influence of government intervention in private sector decisions, a trend exemplified by Trump’s earlier announcement of a 10% government stake in Intel, facilitated by the 2022 Chips Act subsidies.
The initial deal between Nippon Steel and U.S. Steel, celebrated by Trump as creating a “great partnership,” included a commitment to maintain blast furnaces at full capacity for at least ten years, avoiding layoffs and outsourcing. While a $5,000 bonus was previously promised to workers, the details of this commitment following the plant's continued operation remain unclear. These events occurred amidst ongoing trade negotiations between the U.S. and Japan, fueling investor interest in the resolution of trade disputes to ensure stability and growth within the steel industry. The controversy surrounding the intervention highlights the complex interplay of national security, economic policy, and private business decisions.
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Originally published at: https://www.cnbc.com/2025/09/20/trump-golden-share-us-steel.html
