Trump’s Greenlight Sends US Steel Stock Soaring 24 Percent

United States Steel Corp (NYSE: X) experienced a sharp rise in its stock value, climbing nearly 24%, after former President Donald Trump publicly supported its pending acquisition deal with Japan’s Nippon Steel Corporation. The announcement came amid ongoing scrutiny of the deal by the Biden administration and regulatory bodies, but Trump’s endorsement sent a powerful signal to investors.

The partnership, which had been under political and regulatory pressure, now appears to have regained momentum thanks to Trump’s public remarks, reigniting investor interest in US Steel.

Trump’s Backing Changes Market Sentiment

Speaking at a rally in Pennsylvania, Trump called the Nippon Steel-US Steel deal “a smart and strategic partnership” that could strengthen American manufacturing while allowing foreign capital to modernize the legacy steelmaker. His comments come just months after he criticized foreign acquisitions during his presidency.

“If it helps American workers and keeps our industry strong, I support it,” said Trump.

Within minutes of the speech, US Steel shares surged 23.8%, closing at $42.26, their highest single-day gain in over a decade.

Bloomberg reported that several institutional investors quickly increased their holdings after Trump’s remarks, signaling renewed optimism around the controversial acquisition.

The $14.9 Billion Deal: A Quick Recap

The deal between Nippon Steel and US Steel was first announced in December 2023, with Nippon Steel agreeing to acquire US Steel for $14.9 billion in cash, valuing the company at $55 per share. The agreement promised to preserve US Steel’s branding and operations in the United States, and Nippon Steel committed to not shutting down any plants or laying off American workers.

However, U.S. lawmakers and the Biden administration expressed concern over foreign ownership of a company seen as critical to national security. The Committee on Foreign Investment in the United States (CFIUS) launched a full-scale review, citing risks to supply chains and domestic production.

Still, Trump’s recent approval has complicated the political optics and may push the Biden administration to take a softer approach in order not to appear anti-business during the election season.

For more on the original deal details, refer to Reuters’ coverage.

Why This Matters for the Steel Industry

The Trump endorsement not only adds political weight to the deal but also reassures investors about the future of steel manufacturing in the United States. Analysts believe that Nippon Steel’s global technology and innovation could help modernize US Steel’s outdated facilities, potentially making the American steel sector more competitive globally.

“With Trump on board, this deal has a real shot at going through,” said Megan Curtis, senior analyst at Fidelity.
“It’s a win-win if they can modernize without downsizing.”

Industry watchers note that US Steel has struggled with falling profits and aging infrastructure, particularly in comparison to foreign competitors. The Nippon deal could inject much-needed capital and efficiency.

Political Implications and Election Optics

Trump’s backing of a Japanese firm buying an American company is already causing a stir in political circles. During his presidency, Trump was known for his “America First” stance, including tariffs on foreign steel. His sudden shift has led some critics to question the motivation behind his support.

Still, his public approval may increase pressure on the Biden administration to either approve the deal or present a compelling alternative. With the 2024 election looming, this issue could become a key talking point for both parties.

According to The Wall Street Journal, some Democrats are now working to ensure stricter conditions are placed on the acquisition, particularly around labor rights and U.S. defense supply chains.

Investors Eye Potential Gains as Uncertainty Fades

Trump’s endorsement has reduced uncertainty, which was the biggest drag on US Steel’s stock over the past few months. Now, analysts predict further gains if regulatory clearance follows soon. The share surge also had a ripple effect on related industrial and material sector stocks, boosting investor sentiment across Wall Street.

“Markets love clarity, and Trump’s message brought just that,” said Thomas Lin, equity strategist at Morgan Stanley.

US Steel’s share price, already up 30% in the last 12 months, could continue climbing if CFIUS and the Biden administration give the green light in the coming weeks.

What Comes Next?

While Trump’s support adds momentum, the final decision still lies with the Biden administration and regulatory agencies. However, now that a leading political figure has backed the deal, the chances of it being blocked appear slimmer.

Nippon Steel has already reiterated its commitment to American workers and has started outreach efforts to local communities and unions to smoothen the transition. A company spokesperson told CNBC that they are confident in closing the deal before Q3 2025.

Final Thoughts

The dramatic rise in US Steel shares reflects a shift in market perception following Trump’s approval of the Nippon Steel acquisition. What was once viewed with skepticism is now increasingly seen as a strategic alliance that could revitalize the American steel industry.

With key political voices now supporting the deal and investor confidence rising, the path may be clearing for one of the most significant cross-border industrial acquisitions in recent years.

If the deal receives full regulatory clearance, it could mark the beginning of a new era for US Steel, positioning it as a global player backed by the advanced capabilities of one of Japan’s industrial giants.

Stay updated on the latest developments via US Steel’s Investor Page.

For further analysis and updates on US Steel stock trends and acquisition news, follow MarketWatch.

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