On Point | Podcast

The power of the golden share

Jul 7, 2025
Todd Tucker is the Director of Industrial Policy at the Roosevelt Institute and a senior research fellow at Harvard's Kennedy School. Joining him is Fabio Bulfone, an assistant professor at Leiden University specializing in the political economy of industrial policy. They discuss the controversial 'golden share' that allows the U.S. government a say in private industry decisions, especially in mergers like that of Nippon Steel and U.S. Steel. Their conversation covers the implications for American jobs, national security, and the balance between government control and free market principles.
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INSIGHT

Golden Share: Control Without Ownership

  • The golden share grants the U.S. government veto power over key business decisions in U.S. Steel despite private ownership.
  • This control stops short of full socialism because the government doesn’t own the company or its profits.
INSIGHT

How Trump's Golden Share Changes the Rules of Steel Ownership

The "golden share" in the U.S. Steel-Nippon Steel deal grants the U.S. government, specifically the sitting president, veto power over major corporate decisions without owning the company.

Todd Tucker explains this arrangement allows government control over key strategic choices like relocation, name changes, and investments, but the company remains privately owned by Nippon Steel. While not full nationalization, it represents a significant government influence rare in the U.S.

This control is tied uniquely to the current president, giving Donald Trump direct leverage over the company’s decisions during his term, creating a politically charged form of industrial policy unlike typical technocratic governance.

Historically, golden shares were used mostly in Europe to prevent foreign takeovers, but here it was used to facilitate foreign ownership with retained U.S. governmental control.

This case highlights a shift towards government intervention in critical industries, raising questions about the balance between free market principles and national strategic interests.

INSIGHT

Trump’s Personalized Golden Share

  • The golden share provision uniquely names Donald J. Trump as the decision-maker while he is president.
  • This personalization contrasts with typical, technocratic government control and raises governance concerns.
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