The Trump administration will provide details on “golden share” in US steel trading, but Union says it is “disappointing”
President Donald Trump will have a unique impact on the operation of US steel under conditions of What the White House calls “investment” It is made by Japan-based Nippon Steel, an iconic American steel manufacturer and an iconic American steel manufacturer.
Over the past few days, administrative authorities have provided additional insight into the “golden sharing” arrangements the federal government has made as a condition to support transactions.
Pittsburgh-based steelmakers and Nippon Steel are planning to invest $11 billion in new investments by 2028 after indicating that they plan to proceed with the deal under the terms of a national security agreement that has White House approval.
The White House describes the deal as a “partnership” and “investment” by Nippon Steel, US steel, but Nippon Steel has never retreated its stated intention to purchase and manage US steel as a fully owned subsidiary in the second half of 2023 with an offer of nearly $15 billion.
Commerce Secretary Howard Lutnick posted on social media on Saturday how the president-detained “golden share” would operate, revealing that even if the White House pledges to exclude corporate regulations and expand it, he is willing to actively insert it into private companies’ operations.
Under government conditions, it is not possible to relocate US steel headquarters from Pittsburgh and rename the company, “transferring production or employment outside the United States,” to restructure operations overseas within the shuttered factory or other forces held by the President, without Trump’s consent.
Lutnick also said the president’s approval would be required to cut or delay $14 billion in planned investments.
“The US-held golden share of US steel has a strong term that directly benefits and protects America, Pennsylvania, great steel workers in US steel, and US manufacturers who are significantly expanding 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 an investment channel in an executive order based on terms of the accepted national security agreement.
Pennsylvania lawmakers say the higher numbers include the costs of the electric arc furnace (a more modern steel factory) that Nippon Steel hopes to build in the United States.
The President has the power to name one of the three independent directors of the Business Commission and to deny veto over the other two options. Details of the board structure were first reported by the New York Times.
Details of the agreement came into play when Trump was traveling to Alberta, Canada for a group at Seven Summit.
Still, the complete terminology remains somewhat unknown. The company has not made public the full terms of its acquisition of US steel Nippon Steel or its national security agreement with the federal government.
On Sunday, United Steelworkers, a trade union representing US steel employees, posted a letter raising questions about transactions that were forged by Trump.During his runFor the presidencyI had promised to block itNippon Steel’s acquisition of US steel.
The union said Trump was “disappointing” that he “reversed the course” and raised basic questions about the ownership structure of US steel.
“Neither the government nor the corporations have publicly identified what all terms and conditions of the proposed transaction are,” the letter said. “Our collective agreement expires next year on September 1, 2026, with USW and its members ready to attract new owners of US steel to “get a fair contract.”
If Trump controls US steel as much as he claims, it can put him in the nuanced position of negotiating the pay and profits of unified steel workers who enter into medium-term elections.
As president, Joe Biden used his authorityBlock Nippon Steel’s acquisitionOur steel on the way out of the White House after a review by the Foreign Investment Committee in the US.
After he was elected, TrumpExpressed opennessThe arrangement was made and another review was ordered by the committee. That’s when the idea of ”golden share” emerged as a way to resolve national security concerns and protect America’s interests in domestic steel production.
As they tried to win the American officials, Nippon Steel made a series of commitments.
thatIt gradually increasedThe amount that had pledged to invest in US steel promised to maintain the US steel headquarters in Pittsburgh, place steel under the majority of American citizens and committees, and continue to run the plants.
He also said it would not import steel slabs that would protect US steel interests in trade issues and compete with US steel explosion furnaces in Pennsylvania and Indiana.
This story was originally introduced Fortune.com