The Trump administration intervened decisively to prevent U.S. Steel from shutting down operations at its Granite City, Illinois plant, which was poised to close in November, affecting nearly 800 employees. Even though the company had communicated that workers would continue to receive pay, pressure from the administration led to a reversal of this decision. Commerce Secretary Howard Lutnick made it clear to U.S. Steel’s CEO, Dave Burritt, that the administration would not permit the closure, prompting the company to announce that operations would continue and steel slabs would still be produced.
This intervention marks the first application of the “golden share” rights exercised by the Trump administration under a national-security agreement tied to U.S. Steel’s recent $14.1 billion acquisition by Japan’s Nippon Steel. This agreement grants the U.S. government veto authority over critical operational decisions, including plant closures and shifts in production.
Following the administration’s intervention, a spokesperson for U.S. Steel stated, “U.S. Steel will continue to supply slabs to Granite City. Our goal was to maintain flexibility, and we are pleased to have found a solution to continue slab consumption at Granite City.” This development reflects the increasing involvement of the Trump administration in private sector operations.
In addition to this intervention, the administration has showcased its growing influence in the technology sector, as indicated by President Trump’s announcement of a 10% stake in Intel following the company’s receipt of substantial subsidies under the 2022 Chips Act.
Earlier this year, upon announcing the acquisition of U.S. Steel by Nippon, President Trump reassured workers that the deal would secure employment and promised no layoffs or outsourcing for at least a decade, while also offering a $5,000 bonus to employees. As trade discussions with Japan progress, the administration’s strategic moves are closely watched by investors looking for signs of favorable agreements that could mitigate potential tariffs.
