The Trump administration has moved to prevent U.S. Steel from halting operations at its Granite City, Illinois, facility, in what marks the first use of new executive powers tied to the company’s recent foreign takeover.
The decision reverses the steelmaker’s earlier plan to idle the site and signals a stronger hand for the White House in shaping corporate decisions.
Plant Shutdown Halted After Government Intervention
U.S. Steel had notified nearly 800 employees that operations would cease in November, although workers were expected to remain on payroll.
However, Commerce Secretary Howard Lutnick stepped in, warning CEO Dave Burritt that the administration would not approve the move.
Following the intervention, the company confirmed the plant would continue producing slabs for sheet steel.
“U. S. Steel will continue to supply slabs to Granite City,” a company spokesperson said.
“Our goal was to maintain flexibility, and we are pleased to have found a solution to continue to slab consumption at Granite City.”
Use of “Golden Share” Rights
The move represents the first use of the so-called “golden share” rights established in June as part of Nippon Steel’s $14.1 billion acquisition of U.S. Steel.
The agreement, framed as a national security measure, gave the administration veto authority over plant closures, offshore shifts, and other strategic corporate decisions.
The rights were designed to preserve American production capacity and protect jobs in critical industries.
Trump’s Growing Role in Industry
The decision adds to a string of actions underscoring Trump’s expanding role in shaping the private sector.
Last month, the president announced plans for the government to take a 10% equity stake in Intel, which has received significant subsidies under the 2022 Chips Act.
These moves suggest a more interventionist industrial policy, with the administration using both direct investment and regulatory authority to influence corporate behavior.
Commitments Made to Workers
When the Nippon Steel acquisition was first announced, Trump sought to reassure U.S. Steel employees.
He told workers that the Japanese company would operate as a “great partner” and pledged that no outsourcing or layoffs would occur.
Trump added that the company had agreed to keep blast furnaces running at full capacity for at least a decade.
At the time, he also promised a $5,000 bonus for workers as part of the transition.
Broader Trade Context
The intervention at Granite City also comes as the U.S. and Japan engage in trade negotiations.
The outcome of these talks is being closely watched by markets and investors, who hope the two countries can reach agreements that avoid punitive tariffs.
By exercising its “golden share” authority, the administration is signaling that job protection and domestic output will remain a priority even amid foreign ownership.
For U.S. Steel workers in Illinois, the immediate effect is clear: operations will continue, paychecks will keep flowing, and Washington will remain directly involved in decisions shaping the future of the industry.