Golden Leverage: U.S. Secures Stake in Steel Megadeal
Washington rewrites the rulebook on foreign investment with a golden stake in the $14B Nippon Steel–U.S. Steel partnership, signaling a bold new chapter in American industrial strategy.

In a move that could redefine foreign investment oversight in strategic industries, the United States government is set to receive a “golden share” in the proposed $14 billion partnership between Japan’s Nippon Steel and U.S. Steel. The deal, orchestrated under the Trump administration, would grant the federal government influence over the selection of American board members, marking an unusual foray into corporate governance in the private sector. While the mechanics of this share remain under wraps, the implications are already stirring debate across political and industrial circles.
Senator Dave McCormick, a Republican from Pennsylvania and former Treasury official, confirmed the arrangement on CNBC. He characterized the structure as a hybrid partnership designed to blend foreign capital and technology with American control. The deal comes amid a wave of economic nationalism and renewed attention on domestic manufacturing capabilities—especially in the context of national security.
Golden Share, Golden Power?
Golden shares are not new in global finance, but they are rare in U.S. practice. Typically used in crisis scenarios, such as the government's intervention in General Motors during the 2008 financial collapse, these special stakes allow governments to assert control or veto powers without holding majority ownership. The U.S. rarely exercises this kind of leverage in public markets, but this instance appears to be an exception born from both political pressure and strategic necessity.
President Trump previously voiced strong opposition to Nippon Steel’s outright acquisition of U.S. Steel. His objection centered on the symbolic and practical importance of keeping the company American-owned, especially given its deep roots in Pennsylvania—a key battleground state in the 2024 election. Trump later reversed course, branding the new structure a “partial ownership” investment that keeps U.S. Steel under American control. It’s unclear how much equity the federal government will hold or what exactly the golden share will entail, but the messaging is unmistakable: the U.S. will not surrender industrial sovereignty.
