Donald Trump is pushing the US government deep into the corporate executive office, robbing private companies of direct ownership and enforcement on a scale not seen outside of wartime or national economic emergency.
What was now dismissed as an overreach of the government is the official White House policy. According to Report From CNBC, this practical approach drags Republicans into their territory.
At the heart of this is the “golden share” of Trump in American steel. Japanese Steel In exchange for approval of the merger, he agreed to give the President a final say on all major decisions at the company.
This makes Trump the only person in the United States to have a personal veto of the country’s third largest steel producer. “Do you know who has the Golden Share? I will,” Trump said in his July 15 appearance in Pittsburgh at a summit focusing on artificial intelligence and energy.
The Pentagon incorporates the fairness of rare earth mine MP materials
Trump’s golden share is not a financial investment, but it shows that his administration is ready to spend money on the table as well. Earlier this month, the Department of Defense purchased $400 million in shares MP MaterialsRare Earth Mining Company. That single move has made the Pentagon the largest shareholder in the company.
Glaserine Bascaran, analyzing key minerals at the Center for Strategic and International Research, is known as the Pentagon Purchase and “the largest public-private cooperation that mining has ever had in the United States.” She emphasized that the Department of Defense “has never done fair in mining companies or mining projects.”
Sarah Baual Danzman, national security and foreign investment analyst for the Atlantic Council, said Trump’s golden share of steel in the US is similar to nationalisation without government funding. “It’s similar to nationalizing a company, but there is no profit that a company normally receives, such as direct investment by the government,” she said.
China’s Tiktok and the next wave of US investment
More transactions could continue. The Trump administration has already developed policies aimed at supporting strategic sectors, particularly businesses heading head-to-head with the country’s funded Chinese competitors. In April, Home Secretary Doug Burgham suggested that the government may need to invest directly in companies challenging China with key minerals.
James Litinsky, CEO of MP Materials, said the Pentagon investment is a template for: Speaking to CNBC, he said, “It’s a new way to accelerate the free market and get the supply chain on the coast we want.” He also pointed to the role the US government plays in helping the mining sector compete with Chinese merchants.
The idea of mixing public funds with private companies has gained political traction. Sen. Dave McCormick, a Republican from Pennsylvania, said in May that Trump’s US steel deal could be a model for handling foreign investments related to national security, especially if it benefits economic growth.
Investors are now speculating where Trump will go next. The president has already proposed a new target. In January he proposed that the government take 50% stake Tiktok As part of a joint venture that forces China’s ordinances and forces US Trump to extend the deadline, which was extended until September 17th.
In recent history, the federal government purchased a majority stake in General Motors after the collapse of 2008 to avoid total bankruptcy. The United States lost its position and sold it. The relief was also handed over to Lockheed and Chrysler in the 1970s.
This time there will be no recession or war. But Trump’s team is dealing with another kind of pressure. Competition with China and post-Covid supply chain disruption.
China’s rule Rare Earth said it warned that automakers must halt production within weeks as Beijing restricted transportation to the US in April, and that it would force the then-Trump administration to return to negotiations with China.
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