The Nippon Steel deal may be remembered as a turning point not just for industrial policy, but for how the U.S. is perceived by global investors. In a geopolitical moment defined by economic competition and fragmented alliances, the U.S. must choose: will it lead by example as an open, rules-based economy or slide into the very model of conditional capitalism it has long criticized in others?

The golden share may be strategic. But unless applied with extreme caution, it could prove to be short-sighted, self-defeating, and a poor trade for long-term investment leadership.