The color of the day is gold

Summary

Marketplace Morning Report: "The Color of the Day is Gold"
Release Date: June 16, 2025

In this episode of Marketplace Morning Report, host Sabri Benishore delves into a spectrum of pressing economic and business stories, ranging from significant mergers in the steel industry to controversial immigration policies and the revitalization of the US shipbuilding sector. The episode provides listeners with a comprehensive overview of the latest developments shaping the business landscape.

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1. Nippon Steel's Acquisition of US Steel and the Introduction of the Golden Share

The episode opens with a significant development in the global steel industry. Shares in Nippon Steel saw an uptick in Tokyo as the company finalized its acquisition of US Steel, a deal that had garnered substantial attention.

Sabri Benishore introduces the topic:
"Shares in Nippon Steel closed up in Tokyo today. That is after Nippon's deal to buy US Steel finally crossed the finish line." [00:01]

Joining the discussion is Nancy Marshall Genser from Marketplace, who sheds light on the unique aspects of this merger. The deal includes a golden share, a strategic move favored by the Trump administration.

Nancy Marshall Genser explains:
"The golden share gives this administration and future presidents a stake in the merged companies and considerable power." [00:42]

This golden share encompasses several restrictions aimed at protecting US interests. Commerce Secretary Howard Lutnick emphasized that Nippon Steel cannot relocate production, shutter or idle plants without presidential consent, and must adhere to specific guidelines regarding raw material sourcing and worker salaries.

The acquisition has not been met without resistance. The United Steel Workers union expressed disappointment over President Trump's reversal during the deal's approval. The union's letter highlights their concerns about the timing and the union's preparedness to negotiate with the new ownership as the current contract nears expiration in September next year.

Sabri Benishore summarizes the union's stance:
"The union is disappointed that Trump, quote, reversed course. The letter also points out that its current contract expires in September of next year and the union is, quote, prepared to engage the new owners." [01:23]

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2. President Trump's $5 Million "Gold Card" for Fast-Tracked US Citizenship

Shifting focus to immigration policies, the episode discusses President Trump's newly launched Gold Card program, which offers a fast lane to US legal residence and citizenship for a hefty fee of $5 million.

Sabri Benishore introduces the story:
"A website is now live for what President Trump calls a gold card... The price tag, $5 million." [01:52]

Savannah Peters from Marketplace provides further details, noting that the Gold Card is intended to replace the existing EB5 visa program, which traditionally requires immigrants to invest in US businesses that create jobs.

However, unlike the EB5 program, the Gold Card does not seem to have an investment component. Instead, it appears to be purely a financial transaction with the US Government.

Julia Gillat from the Migration Policy Institute raises concerns:
"It's not yet clear President Trump has the legal authority to create a new visa category without Congress getting involved..." [02:43]

Stan Voiker of the American Enterprise Institute echoes skepticism regarding demand:
"Most people with $5 million to throw are doing pretty well in their own countries." [02:47]

Despite claims from President Trump that 15,000 people have signed up for the Gold Card, Savannah Peters points out that signing up does not equate to actual purchases, and the website lacks financial verification measures.

Sabri Benishore adds:
"@TrumpCard.gov that does not mean 15,000 people have paid $5 million, though the website doesn't require proof of finances." [03:04]

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3. US-China Trade Relations: Continued Tensions Amid Mixed Economic Indicators

The ongoing trade war between the US and China remains a central topic, despite a publicized truce. Economic indicators from China paint a complex picture.

Sabri Benishore reports:
"The trade war between the US And China, despite a truce, continues to show up in China's economic data. Factory production hit a six month low last month." [03:07]

US tariffs on Chinese goods have escalated to 55%, a notable increase even with the truce in place. Yet, consumer behavior within China shows resilience, with retail sales up 6.4% year over year.

This juxtaposition highlights the multifaceted impacts of trade policies, where industrial sectors may suffer while consumer markets remain buoyant.

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4. Revitalizing US Shipbuilding: A Billion-Dollar Investment and National Security Implications

A significant portion of the episode is dedicated to the initiative to revive the US shipbuilding industry, which has historical significance and contemporary national security implications.

Sabri Benishore introduces the story of Davie Shipbuilding, a Canadian company that plans to invest $1 billion in constructing icebreaking ships in Texas for the US Coast Guard. This move aligns with a bipartisan effort to rejuvenate domestic shipbuilding capabilities.

Brian Potter, a senior infrastructure fellow at the Institute for Progress, reminisces about the golden era of US shipbuilding:
"There was a time when US Shipbuilding was the envy of the world." [04:20]

Thomas McKenney, a naval architect at the University of Michigan, provides historical context:
"During World War II, the US had an extremely dominant shipbuilding industry..." [04:23]

However, post-war dismantling of the industry and competition from countries like China have shifted the global landscape. Cynthia Cook from the Center for Strategic and International Studies notes China's dominance:
"They invested heavily in that. Now they are the largest shipbuilder in the world, with almost, I think, around 60% of the market." [04:56]

The challenges facing the US shipbuilding revival are multifaceted:

• Cost Competitiveness: Chinese builders operate with economies of scale and cheaper labor, allowing them to produce ships at less than a fifth of US costs.
• Workforce Shortages: High costs of living in shipbuilding locations and extreme weather conditions deter potential workers.
• Demand Guarantee: Ensuring continuous government contracts is crucial for maintaining efficiency and justifying investments in facilities and workforce.

Matthew Paxton, president of the Shipbuilders Council of America, emphasizes the need for steady demand:
"It's hard to hire people... A guarantee that the government is going to need a lot of these ships." [05:34]

Daniel Ackerman underscores the importance of consistent contracts:
"We do need that constant demand signal. You're never going to be really efficient building one of anything." [05:57]

Efforts to boost the industry include proposed tax breaks in Congress and strategic investments to train and retain a skilled workforce. Cynthia Cook adds:
"Many shipyards are in places with extreme weather or high cost of living, so each location has its own challenges in terms of workforce issues." [05:45]

Despite the obstacles, there is optimism that with sustained political support and strategic planning, the US can regain a foothold in the global shipbuilding arena.

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Conclusion

This episode of Marketplace Morning Report skillfully navigates through complex and diverse economic issues, providing listeners with in-depth analysis and expert insights. From international mergers and controversial immigration policies to the strategic importance of revitalizing domestic industries, the report underscores the interconnectedness of global economics and national policies.

Sabri Benishore wraps up the segment by emphasizing the ongoing developments and their potential implications:
"And in New York, I'm Sabri Benishore with the Marketplace Morning Report from apm, American Public Media." [06:30]

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This comprehensive summary captures the essence of the podcast episode, ensuring that even those who haven't listened can grasp the critical discussions and their broader significance.

Transcript

[Sabri Benishore]

Getting US Citizenship as an immigrant is usually a long and difficult process. Unless, of course, you can just buy it. From Marketplace. I'm Sabri Benishore in for David Brancaccio. First, shares in Nippon Steel closed up in Tokyo today. That is after Nippon's deal to buy US Steel finally crossed the finish line. There are some unusual aspects to the arrangement, though. Marketplace's Nancy Marshall Genser joins us now live to elaborate. Hi, Nancy.

[Nancy Marshall Genser]

Good morning.

[Sabri Benishore]

So the two companies announced that President Trump has approved this partnership. There's something kind of unique about it, though, this something called a golden share. What is that?

[Nancy Marshall Genser]

Yeah, this is something the Trump administration insisted upon. The golden share gives this administration and future presidents a stake in the merged companies and considerable power. In. In a post on X, Commerce Secretary Howard Lutnick says Nippon can't transfer production or jobs outside the US or close or idle plants longer than normal without the president's permission. Lutnick says there are other protections around things like sourcing of raw materials and workers salaries.

[Sabri Benishore]

Now, speaking of workers, it seems United Steel Workers union is not too happy about all this. How are they responding?

[Nancy Marshall Genser]

Yeah, the union posted a letter yesterday about the merger. During the presidential campaign, President Trump said he would block the deal. And the letter says the union is disappointed that Trump, quote, reversed course. The letter also points out that its current contract expires in September of next year and the union is, quote, prepared to engage the new owners.

[Sabri Benishore]

Okay, Marketplace's Nancy Marshall Genzer, thank you so much.

[Nancy Marshall Genser]

You're welcome.

[Sabri Benishore]

A website is now live for what President Trump calls a gold card. That is where you can pay for a fast Lane to US legal residence and citizenship. The price tag, $5 million. Aside from that, we don't have a ton of details on the program. Marketplace's Savannah Peters has more.

[Savannah Peters]

The Trump administration says its Gold Card would replace the existing EB5 visa program, which offers green cards to foreigners who can prove they've made big investments in US Businesses that helped create job. The gold card doesn't seem to have an investment component. It's just about paying money to the US Government. Julia Gillat with the Migration Policy Institute says it's not yet clear President Trump has the legal authority to create a new visa category without Congress getting involved or whether there's much demand, because you.

[Howard Lutnick]

Have to be really extraordinarily wealthy for this to be attractive.

[Savannah Peters]

Stan Voiker is with the American Enterprise Institute. He says Most people with $5 million to throw are doing pretty well in their own countries.

[Howard Lutnick]

If you wanted to hit 10 billion in revenue a year, which is less than 1% of our budget deficit. You need 2,000 buyers per year.

[Savannah Peters]

I'm Savannah Peters for Marketplace.

[Sabri Benishore]

President Trump has said 15,000 people have signed up for the Gold Card. @TrumpCard.gov that does not mean 15,000 people have paid $5 million, though the website doesn't require proof of finances. But 15,000 are at least interested, according to the president. The trade war between the US And China, despite a truce, continues to show up in China's economic data. Factory production There hit a six month low last month. U.S. tariffs on Chinese goods are now 55%, by the way, that is with the truce. At the same time, shoppers inside China are doing much better than expected. Retail sales there were up 6.4% year over year. A Canadian shipbuilder wants to make icebreaking ships in Texas. The company, Davie Shipbuilding, last week announced plans to invest a billion dollars in this project. The icebreakers would be for the US Coast Guard to use in the Arctic. The deal comes amid a bipartisan push to revive the domestic shipbuilding industry in the U.S. reporter Daniel Ackerman has more on what that would actually take.

[Brian Potter]

There was a time when US Shipbuilding was the envy of the world.

[Thomas McKenney]

During World War II, the US had an extremely dominant shipbuilding industry in the sense that it built more ships than basically anyone else.

[Brian Potter]

Brian Potter is a senior infrastructure fellow with the Institute for Progress. And he says after the war, the.

[Thomas McKenney]

Industry kind of got dismantled. There was all sorts of emergency shipyards and they all basically got closed down.

[Brian Potter]

The Brooklyn Navy Yard is now full of waterfront offices and art galleries. Meanwhile, countries like China ramped up their shipbuilding, says Thomas McKenney, a naval architect at the University of Michigan.

[Cynthia Cook]

They invested heavily in that. Now they are the largest shipbuilder in the world, with almost, I think, around 60% of the market.

[Brian Potter]

McKenney says with that economy of scale plus cheaper labor, Chinese builders can make ships at less than 1/5 the cost of US builders.

[Cynthia Cook]

So from a price competition perspective, no one is going to come to the US to build a container ship or a bulk carrier.

[Brian Potter]

Still, US Lawmakers want to boost shipbuilding for national security. A bill in Congress would offer tax breaks for investing in shipyards, but revitalizing the industry won't happen overnight. One challenge is the workforce.

[Matthew Paxton]

It's hard to hire people.

[Brian Potter]

Cynthia Cook is a senior fellow with the center for Strategic and International Studies. She says many shipyards are in places with extreme weather or high cost of.

[Matthew Paxton]

Living, so each location has its own challenges in terms of workforce issues.

[Brian Potter]

One key to solving those issues? A guarantee that the government is going to need a lot of these ships.

[Daniel Ackerman]

We do need that constant demand signal. You're never going to be really efficient building one of anything.

[Brian Potter]

Matthew Paxton is president of the Shipbuilders Council of America. He says shipbuilding is complex, so it helps when yards can lock in contracts for a series of vessels at once.

[Daniel Ackerman]

That's where we can get really efficient. We'll invest in our facilities. We'll invest in our workforce.

[Brian Potter]

The good news, says Paxton, is that increased chip building is a priority that's remained full steam ahead across presidential administrations. I'm Daniel Ackerman for Marketplace.

[Sabri Benishore]

And in New York, I'm Sabri Benishore with the Marketplace Morning Report from apm, American Public Media.