United States President Donald Trump has appointed Department of Commerce officials to manage his veto powers over the company after its acquisition by Japan’s Nippon Steel.
Trump holds a “golden share” in U.S. Steel, the company has said, which offers veto power over decisions like closing locations, cutting employees’ salaries, or buying other U.S. businesses.
“American national security depends on the continued operation of the United States Steel Corporation and its various United States production facilities. I, President Donald J. Trump, hold the Class G Preferred Stock in U.S. Steel, pursuant to the National Security Agreement between the United States Government, Nippon Steel Corporation, and U.S. Steel,” according to a letter to U.S. Steel senior vice president Scot Duncan.
“The United States Government must closely monitor U.S. Steel and its compliance with the Agreement. Accordingly, I designate the Under Secretary of Commerce for International Trade, William Kimmitt, as my designee.”
Trump will also appoint David Shapiro, chief counsel of the Department of Commerce’s Investment Accelerator, as a director of U.S. Steel under the agreement.
While the White House previously said Trump would manage his golden share, it has also noted the agreement allows him to delegate its powers. The golden share’s veto powers will pass to the Treasury and Commerce Departments after Trump leaves office, according to the agreement, but can be reassumed by future presidents.
Nippon Steel’s acquisition of U.S. Steel was approved on 13 June, after the companies agreed to the golden share scheme and signed a national security deal.
The U.S. also said today that the European Union must change its regulations on digital technology companies before the U.S. would lower steel tariffs on the bloc.
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