Trump approves U.S. Steel sale with government golden share

On Jun. 13, 2025 President Trump approved Nippon Steel’s $14.9 billion acquisition of U.S. Steel, requiring the U.S. government to hold a “golden share” with veto power over corporate decisions (whitehouse.gov).

A “golden share” grants special voting rights and veto authority over major decisions—such as production levels and board appointments—without transferring equity ownership to the government (sec.gov).

Simultaneously, the Trump Administration raised steel tariffs from 25 percent to 50 percent, a policy move that increases costs for U.S. consumers and downstream industries (ustr.gov).

Analyses from the Congressional Budget Office and Brookings Institution conclude the arrangement provides no direct financial benefit to taxpayers; higher steel prices are borne by U.S. businesses and consumers while profits flow to Nippon Steel.

No existing federal statute or constitutional provision authorizes a president to demand control shares in private mergers—legal experts describe the golden‐share requirement as an unprecedented expansion of executive power (CRS; Georgetown Law).

Constitutional scholars at Cornell Law School and the Brennan Center warn the golden share may violate the Due Process Clause of the Fifth and Fourteenth Amendments by imposing control without just compensation.

Commentators at the Heritage Foundation and Brookings Institution characterize the precedent as a move toward state capitalism, risking broader government intervention in strategic industries and undermining free‐market principles.