Key points
- The White House intervened to prevent U.S. Steel from idling its Granite City Works plant in Illinois.
- President Trump threatened to use his “golden share” power, a key provision in the Nippon Steel buyout of U.S. Steel.
- This intervention was based on a national security agreement between the U.S. and Nippon Steel.
- U.S. Steel initially planned to halt steel slab processing at Granite City, but reversed course following White House intervention.
The White House announced Monday its intervention to prevent the closure of U.S. Steel’s Granite City Works plant in Illinois. Commerce Secretary Howard Lutnick conveyed President Trump’s intention to utilize his “golden share” authority, a crucial element of the national security agreement facilitating Nippon Steel’s acquisition of U.S. Steel. This agreement grants the federal government a voice in key decisions regarding domestic steel production, including the closure of plants.
The White House’s action directly countered U.S. Steel’s earlier decision to cease steel slab processing at Granite City, citing operational optimization at other facilities in Pennsylvania and Indiana. This move followed the idling of the plant’s last blast furnace in 2023.
Initially, U.S. Steel announced plans to halt operations at Granite City without layoffs, aiming to streamline its production. However, following the White House’s intervention, the company reversed its decision, stating it would continue supplying raw steel slabs indefinitely.
While U.S. Steel refrained from disclosing the specifics of its change in plans, it emphasized its ongoing positive relationship with the Trump administration while declining to comment on the White House’s role in the reversal.
The United Steelworkers union, previously opposed to the Nippon Steel buyout, accused U.S. Steel of attempting to sidestep its commitments under the agreement with the White House. U.S. Steel countered that it remains fully compliant with the terms of the agreement.
The national security agreement includes varying levels of protection for different U.S. Steel facilities; Granite City Works’ protections expire in 2027, while those for other facilities extend until 2035.
Granite City Works plays a vital role in supplying sheet steel to various sectors, including construction, container manufacturing, pipe production, and automotive manufacturing. The White House intervention highlights the administration’s commitment to protecting domestic steel production and underscores the significance of the national security agreement in safeguarding American industry.
