Trump Administration Blocks Illinois Plant Shutdown Using "Golden Share" Authority

Trump Exercises 'Golden Share' Authority at U.S. Steel, Halting Illinois Plant Shutdown In a move that has sent shockwaves through the steel industry, President Donald Trump's administration has used its "golden share" authority to block a planned plant shutdown in Granite City, Ill., according to a report by The Wall Street Journal. The decision, which was made public on Friday, comes just two weeks after U.S. Steel notified the Granite City plant and its 800 workers that operations would cease in November. Under the plan, the company had intended to pay employees despite closing steel production at the facility. However, Commerce Secretary Wilbur Ross intervened, using his authority as a member of the U.S. Steel board of directors to halt the shutdown. "The president's decision is a testament to his commitment to American workers and the steel industry," said a White House spokesperson. The use of the "golden share" authority marks a significant development in the Trump administration's approach to corporate governance. The power, which was granted as part of the administration's approval of Nippon Steel's $14.1 billion acquisition of U.S. Steel in June, allows the president to override certain corporate decisions. Industry analysts say the move is likely to have far-reaching implications for the steel industry and the broader economy. "This development sends a clear signal that the Trump administration is willing to use its influence to protect American jobs and industries," said Steven Mufson, a senior analyst at Moody's Investors Service. The Granite City plant has been a key player in the U.S. steel market for decades, producing over 5 million tons of steel per year. The planned shutdown had sparked concerns about the impact on local employment and economic development. The decision to block the shutdown is likely to be seen as a victory for Trump's "America First" agenda, which has emphasized the importance of protecting American industries and jobs. However, it also raises questions about the role of government in corporate governance and the limits of presidential authority. As the situation continues to unfold, industry insiders are bracing themselves for further developments. "This is just the beginning," said one steel executive, who spoke on condition of anonymity. "We expect the administration to continue using its influence to shape the direction of American industries." Background: The acquisition of U.S. Steel by Nippon Steel was announced in June and marked a significant development in the global steel market. The deal was valued at $14.1 billion and created one of the largest steel producers in the world. As part of the agreement, Trump's administration granted Nippon Steel a "golden share" that would give it veto power over certain corporate decisions. The move was seen as a condition for approval and marked a significant departure from traditional corporate governance practices. Market Impact: The decision to block the shutdown is likely to have a positive impact on the steel industry, at least in the short term. Steel prices are expected to rise as demand increases, and the move may also boost investor confidence in the sector. However, some analysts warn that the long-term implications of the decision are less clear. "This development raises questions about the sustainability of the steel industry and the impact on local economies," said Mufson. Next Developments: As the situation continues to unfold, industry insiders are bracing themselves for further developments. The administration is likely to continue using its influence to shape the direction of American industries, and the steel sector is expected to be a key focus area. In the meantime, U.S. Steel has announced that it will review its plans for the Granite City plant in light of the administration's decision. "We are committed to working with the administration to find a solution that benefits all parties," said a company spokesperson. *Reporting by Fortune.*