The Golden Share Gambit

How Trump's Government Veto Power Over Industry Undermines Free Enterprise

In June 2025, the Trump administration approved the acquisition of U.S. Steel by Nippon Steel, Japan’s largest steelmaker. This reversed a prior decision by President Biden’s administration, which had raised national security and labor concerns about the deal. What made Trump’s approval unique was the condition that the federal government would receive a 'golden share', a veto-wielding equity stake that grants the U.S. government substantial influence over the merged company’s operations.

The announcement that the U.S. government will hold a “golden share” in the newly merged U.S. Steel–Nippon Steel venture marks a dramatic—and dangerous—shift in the relationship between private industry and federal authority. This move grants the executive branch the power to veto strategic decisions by a nominally private company. It’s not just an industrial policy tool; it’s a philosophical break from America’s traditional commitment to free enterprise and limited government principles historically championed by both major parties, and especially by the GOP before 2016.