The Trump administration has taken direct stakes in companies on a scale rarely seen in the U.S. outside wartime or economic crisis, pushing a Republican Party that traditionally championed free-market capitalism to embrace state intervention in industries viewed as important for national security.
Japan’s Nippon Steel agreed to give President Donald Trump a “golden share” in U.S. Steel as a condition for the two companies’ controversial merger. Trump now personally wields sweeping veto power over major business decisions made by the nation’s third-largest steel producer.
“You know who has the golden share? I do,” Trump said at a summit on artificial intelligence and energy in Pittsburgh on July 15.
The president’s golden share in U.S. Steel is similar to nationalizing a company but without any of the benefits that a company normally receives, such as direct investment by the government, said Sarah Bauerle Danzman, an expert on foreign investment and national security at the Atlantic Council, a think tank focused on international affairs.
But the Trump administration demonstrated earlier this month that it is also willing to buy directly into publicly traded corporations. The Department of Defense agreed to purchase a $400 million equity stake in rare-earth miner MP Materials, making the Pentagon the company’s largest shareholder.
This level of support by the federal government for a mining company is unprecedented, said Gracelin Baskaran, an expert on critical minerals at the Center for Strategic and International Studies.
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