US President Donald Trump has used a rare mechanism, known as a “golden share,” to ensure that a Japanese-owned US Steel does not pose a threat to national security. The move comes after Nippon Steel, the soon-to-be owner of US Steel, granted Washington special authority over the company’s operations.
The golden share allows the US government to have a perpetual say in the company’s decisions, giving it control over major structural changes such as production levels and factory locations. The agreement also grants the government the power to block production and jobs from being transferred outside the US.
The use of a golden share is not uncommon in other economies, particularly in Europe and Asia. Several countries, including China and Russia, have used this mechanism to exert state oversight over key industries. However, its use in the US has been rare due to historical concerns about government involvement in private companies.
US Senator Dave McCormick said that the Nippon Steel arrangement could be a model for transactions affecting national security. Industrial policy is becoming increasingly bipartisan in the US, with both Democrats and Republicans supporting measures to protect US manufacturing.
Economists have suggested that golden shares could be used to maintain oversight of sectors posing a systemic risk to the US economy. Saule Omarova, a former Biden nominee, proposed using a golden share in systemically important banks to ensure public participation in decision-making on risk management.
Nippon Steel’s new owner, Eiji Hashimoto, expressed confidence that the company would not be constrained by Washington’s special powers. The move has been met with a decline in Nippon Steel shares, which have fallen 8% for the week so far.
Source: https://fortune.com/asia/2025/06/20/golden-shares-us-steel-china-europe-russia-trump