President Donald Trump will wield control over a powerful “golden share” tied to the national security agreement that allowed Japan-based Nippon Steel to acquire U.S. Steel, according to disclosures filed with the U.S. Securities and Exchange Commission (SEC).
The golden share provision gives Trump the authority to appoint a board member and influence key decisions involving domestic steel production and competition with foreign producers.
While Trump — or a designee — holds that power during his presidency, the authority shifts to the Treasury and Commerce departments under any future president, according to SEC filings.
The White House clarified in a statement that the provision “is not granted to Trump specifically, but to whoever the president is,” when asked why the current president has direct control, while future administrations do not.
Still, the language in the agreement specifically refers to Trump by name.
It stipulates that certain decisions cannot be made “without, … at any time when Donald J. Trump is serving as President of the United States of America, the written consent of Donald J. Trump or President Trump’s Designee” or “at any other time, the written consent of the CMAs,” which refers to the Treasury and Commerce departments.
Nippon Steel finalized its nearly $15 billion acquisition of Pittsburgh-based U.S. Steel last week, officially making the American company a wholly owned subsidiary.
Trump initially opposed the deal — as former President Joe Biden had also done during his final months in office — but later reversed course. He has since described the transaction as a “partnership” between U.S. Steel and Nippon Steel.
The national security agreement took effect on June 13 and was executed between the federal government — represented by the Departments of Commerce and Treasury — and Nippon Steel along with its American subsidiary, per the filings.
While the full agreement has not been made public, several details have been disclosed in official statements and filings by the companies. U.S. Steel confirmed Wednesday that the broader agreement remains unpublished.
Nippon Steel’s pursuit of U.S. Steel spanned 18 months, facing pushback from the United Steelworkers union, national security concerns, and intense political scrutiny — particularly in Pennsylvania, a key electoral battleground and home to U.S. Steel.
With the acquisition, the combined company will become the world’s fourth-largest steelmaker — in an industry largely dominated by Chinese firms. Analysts note that the deal could modernize U.S. Steel’s operations with Nippon Steel’s advanced technology and includes a commitment to invest $11 billion in upgrading American facilities.
To address regulatory and political resistance, Nippon Steel added the golden share clause, granting Trump the right to appoint an independent director and veto several strategic decisions.
Those restricted decisions include reducing capital commitments promised in the agreement, changing U.S. Steel’s name or headquarters, shutting down or idling plants, transferring production or jobs outside the United States, acquiring competing American firms, and key choices involving trade, labor, and international sourcing.
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