Authoritarian Economic Consolidation

The U.S. Steel - Nippon Deal

Japan’s Nippon Steel completed its $14.9 billion acquisition of U.S. Steel, but with an unprecedented twist: President Trump retains a “golden share” giving him what he calls “total control” over the American steel giant. This arrangement allows the president to veto key corporate decisions and control board appointments, effectively making Trump a permanent shadow CEO of one of America’s most iconic industrial companies. While framed as protecting national security, critics note this gives the president “a startling degree of personal power over a corporation” - representing a new model where the executive branch can maintain direct control over private companies under the banner of economic nationalism. The U.S. Steel-Nippon deal should be understood as a significant example of authoritarian economic consolidation in several key ways:

Presidential Control Over Corporate Governance

The deal gives Trump a “golden share” which he says gives him “total control” over U.S. Steel, including veto rights on key company decisions and the ability to control board appointments. This represents an unprecedented concentration of corporate control in the hands of a single executive.

Bypassing Democratic Oversight

The United Steelworkers union noted that the golden share gives Trump a “startling degree of personal power over a corporation.” This arrangement circumvents normal legislative oversight and regulatory processes, placing corporate governance decisions under direct presidential authority.

Economic Nationalism as Authoritarian Tool

While framed as protecting American interests, this deal establishes a precedent for presidential control over private enterprise under the guise of “national security.” Trump avoided calling it an acquisition, describing it as a “partnership” despite U.S. Steel making clear it would become a “wholly owned subsidiary” of Nippon - showing how authoritarian leaders reframe reality to suit their narrative.

Strategic Implications for Democracy

This model could be replicated across other critical industries, giving the executive branch direct control over major economic sectors. The fact that both Biden and Trump opposed the deal initially for political reasons during the election shows how economic decisions become tools of presidential power rather than matters of policy debate.

This example demonstrates how authoritarians use legitimate concerns (jobs, national security) to justify extraordinary executive powers that fundamentally alter the relationship between government and private enterprise - a classic step in authoritarian consolidation.