US Steel shares tumble this week after former President Donald Trump publicly criticized the proposed takeover of the American steelmaker by Japan’s Nippon Steel. The news sent shockwaves across the financial and political landscape, stirring national debate on foreign ownership of American companies and the future of U.S. Steel itself.
Let’s dive into the full story — what led to this, how the market reacted, and what could happen next.
In late 2023, Nippon Steel, one of the world’s largest steel producers and Japan’s biggest, made headlines when it announced plans to acquire U.S. Steel in a $14.9 billion deal. The Japanese company offered $55 per share — a major premium over U.S. Steel’s stock price at the time — hoping to expand its global footprint and bring in cutting-edge steelmaking technology.
Nippon Steel made several promises to smoothen the deal:
From a business perspective, the deal made sense. U.S. Steel had been struggling with rising costs and global competition, and many experts saw the acquisition as a lifeline to modernize the 123-year-old company.
Despite the business logic, the proposal quickly drew criticism — especially from labor unions and political leaders. The United Steelworkers union (USW), which represents a large part of U.S. Steel’s workforce, strongly opposed the deal. Their concern? That foreign ownership could eventually weaken union protections, lead to job cuts, and create national security risks.
Soon, politicians from both major U.S. parties joined the pushback. President Joe Biden and Vice President Kamala Harris spoke out against the sale, echoing the sentiment that an iconic American company like U.S. Steel should remain American-owned.
The Committee on Foreign Investment in the United States (CFIUS), which reviews foreign purchases of key U.S. assets, launched an official investigation. The review process, originally set to conclude in late 2024, was extended — pushing any decision beyond the presidential election.
The tipping point came on April 9, 2025. In a post on his social media platform, Donald Trump made it clear he was “totally against” the Nippon Steel deal. He wrote:
“I am totally against the once great and powerful U.S. Steel being bought by a foreign company, in this case Nippon Steel of Japan. As President, I will block this deal from happening. Buyer Beware!!!”
The message was loud and clear — and the financial markets responded immediately.
Within hours, U.S. Steel shares tumbled, dropping more than 10% in premarket trading. Although the stock remained up for the year overall, the sharp decline reflected the growing belief that the Nippon Steel deal would not move forward.
Investors began to question the future of U.S. Steel’s strategy and whether the company would find another partner or face ongoing struggles alone.
Trump’s words carry significant weight in this context. Even though he’s not currently in office, his influence over Republican lawmakers and parts of the federal government remains strong. With the 2024 election cycle heating up, Trump’s potential return to the White House means businesses and investors are paying close attention to his policy signals.
In his post, Trump hinted at using tariffs and tax incentives to support U.S. Steel without needing foreign help. This echoes his approach during his first term, where he imposed steel tariffs and promoted “America First” economic policies.
For Nippon Steel and other foreign investors, Trump’s stance signals increased political risk when dealing with high-profile American companies.
This situation isn’t just about one company — it’s about the future of the U.S. steel industry.
The steel sector has always held symbolic and strategic importance in the United States. It fuels industries like construction, manufacturing, and national defense. That’s why any foreign involvement tends to draw extra scrutiny.
There are a few key implications here:
With the deal under pressure and share prices dipping, U.S. Steel now faces a tough road ahead. The company has to:
If Trump returns to office and makes good on his promise to block the deal, the path forward becomes even more uncertain. In that case, U.S. Steel may have to fall back on domestic expansion plans or request government incentives to remain competitive.
A big part of this story is emotional and symbolic. U.S. Steel has been a pillar of American industry for more than a century. It played a crucial role in the country’s growth through the 20th century, especially during times of war and infrastructure expansion.
To many Americans, the idea of this historic brand falling under foreign ownership feels like a loss of national pride. Politicians know this — and that’s one reason why both parties are quick to oppose the deal.
Whether or not Nippon Steel’s intentions are honorable (and many argue they are), the perception of a foreign takeover during a politically charged time creates a major roadblock.
The story of U.S. Steel and Nippon Steel is far from over, but one thing is clear: the deal is now hanging by a thread. The political winds are blowing against it, and Trump’s latest remarks have pushed investor confidence even lower.
As U.S. Steel shares tumble, the spotlight is now on what the company will do next — and how it can adapt in an environment where politics, national security, and business strategy are more tightly connected than ever.
For now, the steel giant must regroup and find a way to protect its future — with or without foreign backing.
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