In a significant intervention, U.S. President Donald Trump has halted U.S. Steel from shutting down its Granite City, Illinois, plant, where nearly 800 workers faced potential layoffs. The announcement comes after the steelmaker stated it would idle operations in November but assured employees they would still receive pay during the process. Despite this, Commerce Secretary Howard Lutnick cautioned CEO Dave Burritt that the administration would not permit such a closure, leading U.S. Steel to reconsider its plans. As reported by the Wall Street Journal, the company announced on Friday that the Granite City facility would continue producing rolled slabs into sheet steel.
This intervention marks the first use of the “golden share” rights, a provision stemming from the company’s $14.1 billion acquisition by Japan’s Nippon Steel, which was approved in June. The arrangement includes a national-security agreement that grants the White House veto power over critical decisions such as plant closures and production shifts. A spokesperson for U.S. Steel confirmed to CNBC, “U.S. Steel will continue to supply slabs to Granite City,” emphasizing the goal of maintaining production flexibility while reaching a solution for continued operations.
Trump’s increasing involvement in private industry is becoming more apparent. In a similar vein, he recently announced that the government would acquire a 10% stake in Intel following the chipmaker’s receipt of billions in subsidies under the 2022 Chips Act. This trend underscores the administration’s strategy to directly influence the U.S. manufacturing landscape, particularly in sectors deemed critical for national security.
During the announcement of the Nippon deal, Trump assured U.S. Steel workers that their blast furnaces would operate at full capacity for at least the next decade. He emphasized that the arrangement would not lead to layoffs or any outsourcing, noting a commitment to protect American jobs. As part of this agreement, workers were promised a $5,000 bonus, a move intended to bolster morale and security among the workforce.
Currently, the Trump administration is engaged in trade discussions with Japan, with the business community eager for updates on potential agreements that could mitigate high tariffs. This context reflects a broader strategy aimed at reinvigorating U.S. manufacturing and aligning with key international partners.
In summary, the balanced approach of the Trump administration appears focused on safeguarding American jobs while fostering partnerships that are essential for future industrial stability. As the news unfolds, eyes will remain on both U.S. Steel and the ongoing trade conversations, which may shape the future of American industry and global trade relations.
For further details, read the complete story from the Wall Street Journal.
Original Source: https://www.cnbc.com/2025/09/20/trump-golden-share-us-steel.html
Category :
Tags:
Publish Date: 2025-09-20 23:13:00
