President Trump’s ‘Golden Share’ Veto Halts U.S. Steel Plant Closure

President Donald Trump’s administration has swiftly deployed its newly established “golden share” authority, directly intervening to prevent U.S. Steel from closing its Granite City, Illinois plant. This unprecedented move overrides the company’s recent plans to cease operations and signals a significant expansion of government influence over private industrial decisions.

The “golden share,” essentially a veto power over specific corporate actions, was a critical condition for White House approval of Japan’s Nippon Steel’s $14.1 billion acquisition of U.S. Steel in June. This authority was rapidly exercised after U.S. Steel notified the Granite City plant and its 800 employees just two weeks ago of an impending November shutdown.

Sources indicate that Commerce Secretary Howard Lutnick directly contacted U.S. Steel Chief Executive Dave Burritt, unequivocally stating that the administration would not permit the closure and that President Trump would invoke his golden share power. Lutnick reportedly dismissed U.S. Steel’s plan to pay employees despite the plant not operating as “nonsense.”

Within days of the intervention, U.S. Steel reversed its decision, confirming, “Our goal was to maintain flexibility, and we are pleased to have found a solution to continue to slab consumption at Granite City.” This intervention marks a significant development for union leaders who had voiced opposition to the Nippon Steel acquisition, fearing potential plant closures and an increased reliance on foreign-made steel.

The national security agreement with Nippon Steel grants the Trump administration broad control over various corporate changes, including factory closures, relocations, and major operational shifts. This incident is the latest in a series of government interventions in private sector affairs, prompting analysts to warn investors about factoring in heightened political risk. While the concept of a golden share is not entirely new globally, its aggressive use by the U.S. government marks a notable shift in corporate governance.

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