The Trump administration is reported to be preventing U.S. Steel from halting operations at its facility in Granite City, Illinois — leveraging newly acquired control in the company as part of an agreement allowing the White House to approve the company's merger with Japan's Nippon Steel. U.S. Steel informed approximately 800 workers at the facility in early September that it was planning to suspend steel slab processing through November. The Wall Street Journal reported that days later, Commerce Secretary Howard Lutnick intervened, telling the company that the administration would not permit the closure to proceed. U.S. Steel subsequently announced on September 19 that the facility would remain open. "The Trump administration has been a great friend to American steel industry — and we have ongoing positive and productive discussions with them on various matters — but we do not plan to discuss the details of these discussions," the company said in a press statement. President Donald Trump agreed to allow the $14 billion merger between Nippon Steel and U.S. Steel to proceed in June — conditional on the companies granting the U.S. government a so-called "golden share" in U.S. Steel's operations. Exactly what power this authority grants the White House was not immediately clear; however, CNBC reported in mid-June that the federal government is believed to be receiving control over some seats on U.S. Steel's board of directors as part of the merger.
From a supply chain perspective, according to an interview with Todd Tucker, director of industrial policy and trade at the Roosevelt Institute, conducted with NPR, a "golden share" is a mechanism used by governments worldwide to ensure national ownership and control of strategic companies. United States Steel Corporation (U.S. Steel; Big Steel) was founded in 1901 by J.P. Morgan, Andrew Carnegie, and Charles M. Schwab — based in Pittsburgh, Pennsylvania — and was historically one of the largest companies globally. David Burritt is U.S. Steel's CEO. Nippon Steel Corporation (NSC; Nippon Steel), based in Tokyo, Japan, is one of the world's largest steel producers — producing over 60 million tons of steel annually. Eiji Hashimoto is Nippon Steel's President & CEO. Granite City Works is U.S. Steel's integrated steel production facility in Madison County, Illinois — located near St. Louis, Missouri — and ranks among the major U.S. Steel facilities alongside Mon Valley Works and Gary Works.
From a supply chain perspective, the U.S. steel industry produces 80-90 million tons of steel annually globally — ranking as a leading steel producer after China (1 billion+ tons), India, Japan, South Korea, Russia, Germany, and Türkiye. Nucor Corporation, based in Charlotte, North Carolina, is the largest U.S. steel producer globally — particularly a leader in EAF (Electric Arc Furnace) and mini-mill technology. Cleveland-Cliffs Inc., based in Cleveland, Ohio, is another major U.S. steel producer — having acquired AK Steel, Severstal North America, and ArcelorMittal USA facilities — with Lourenco Goncalves as CEO. Steel Dynamics, Commercial Metals Company (CMC), SSAB Americas, Algoma Steel, Stelco (Cleveland-Cliffs), EVRAZ North America, NLMK USA, Big River Steel (U.S. Steel), JSW Steel USA, Nippon Steel North America, Mitsui Steel, and Optimus Steel are among the leading U.S. steel producers.
From a supply chain perspective, the global steel industry's primary organizations include the WSA (World Steel Association), OECD Steel Committee, Eurofer (European Steel Association), AISI (American Iron and Steel Institute), Steel Manufacturers Association (SMA), and Specialty Steel Industry of North America (SSINA). Primary steel production technologies include BOF (Basic Oxygen Furnace), EAF (Electric Arc Furnace; over 70% of U.S. production), DRI (Direct Reduced Iron), HBI (Hot Briquetted Iron), blast furnace, integrated mill, and mini-mill. Major steel product categories include HRC (Hot Rolled Coil), CRC (Cold Rolled Coil), HDG (Hot Dipped Galvanized), EG (Electrogalvanized), plate, rebar, structural, and wire rod. Leading green steel initiatives include green steel, hydrogen steel, HYBRIT (SSAB-LKAB-Vattenfall), H2 Green Steel (Stegra), ArcelorMittal Sestao, Salzgitter SALCOS, thyssenkrupp Steel tkH2Steel, Boston Metal, and Electra. Section 232 steel tariffs were initiated at 25% by Trump 1.0 in 2018 — raised to 50% by Trump 2.0 in 2025. Consequently, Trump's blocking of the U.S. Steel Granite City closure represents a concrete indicator that state industrial policy intervention in the U.S. has entered a new phase — particularly through the deployment of the "golden share" mechanism.
Key Points:
1. Trump administration blocks U.S. Steel Granite City plant closure.
2. 800 workers receive notice in early September of slab processing suspension through November.
3. Following Howard Lutnick's intervention, U.S. Steel announces on September 19 that the facility will remain open.
4. The "golden share" mechanism is employed in the Nippon Steel-U.S. Steel $14 billion merger.
5. Federal government gains control over board seats.
