U.S. Steel (X) Stock: Trump's Tweet Sparks 21% Rally in Steelmaker

TLDR

Table of Contents

Trump backed Nippon Steel’s $14.9 billion bid for U.S. Steel, calling it a “planned partnership” that will create 70,000 jobs
U.S. Steel shares jumped 21% on Friday but remain below the $55 per share offer price due to ongoing uncertainty
Nippon Steel shares rose 7.4% initially but gains moderated to 1.7% by afternoon trading in Tokyo
The deal would create the world’s third-largest steel producer and is central to Nippon Steel’s global expansion strategy
Trump will hold a rally at U.S. Steel’s Pittsburgh plant on May 30, with final approval decision expected within 15 days

U.S. Steel shares rocketed 21% on Friday after President Trump voiced support for Nippon Steel’s $14.9 billion takeover bid. The Japanese steelmaker’s stock also gained ground in Tokyo trading.

Trump announced his backing on Truth Social, describing the arrangement as a “planned partnership” rather than a full merger. He said the deal will create at least 70,000 jobs and add $14 billion to the U.S. economy.

🚨 BIG WIN FOR AMERICA! 🇺🇸 Trump just announced US Steel is STAYING in Pittsburgh—keeping jobs HERE, not overseas! A massive $14B boost and 70,000 jobs thanks to a deal with Nippon Steel. 💪 While Dems were busy crying, Trump’s tariffs MADE AMERICAN STEEL GREAT AGAIN! 🦅 Sorry,… pic.twitter.com/2Epip0aTxN
— Alec Lace (@AlecLace) May 23, 2025

The president emphasized that “U.S. Steel will REMAIN in America” and keep its headquarters in Pittsburgh. Most of the promised investment will happen within the next 14 months, according to Trump’s statement.

U.S. Steel praised Trump as “a bold leader and businessman who knows how to get the best deal for America.” The company has been waiting for regulatory approval after multiple national security reviews.

However, uncertainty lingers about the exact structure of the deal. Trump’s use of “partnership” language has left investors guessing whether Nippon Steel will complete its planned full acquisition.

U.S. Steel shares closed at $52.01 on Friday, still below Nippon’s $55 per share offer. This gap reflects ongoing doubts about whether the transaction will proceed as originally planned.

Deal Structure Takes Shape

The White House and Nippon Steel executives are working on a national security agreement. Under the proposed terms, Nippon Steel would create a separate board for North American operations.

A majority of this board and top management positions would go to U.S. citizens. A federal supervisor would monitor compliance with spending commitments and other conditions.

Nippon Steel has agreed to avoid layoffs or plant closures through the end of the current union contract in 2026. These protections address concerns raised by steelworkers and politicians.

The Committee on Foreign Investment in the U.S. launched a fresh review in April. Their findings have been submitted to Trump, who has 15 days to make a final decision.

Trump plans to visit U.S. Steel’s Pittsburgh facility on May 30 for what he calls a “Big rally.” This event could provide more details about the deal’s structure and timeline.

Nippon Steel’s Growth Strategy

For Nippon Steel, this acquisition represents the cornerstone of its global expansion plans. The deal would boost production capacity from 63 million tons to 86 million tons annually.

Japan’s largest steelmaker faces declining domestic demand and fierce competition across Asia. Access to the growing U.S. market offers a path to renewed growth.

“The benefits of gaining access to the growing U.S. market are enormous,” said Masayuki Kubota from Rakuten Securities. He noted that Nippon Steel leads in technology but needs new markets for expansion.

The combined company would become the world’s third-largest steel producer by volume. Only China’s Baowu Steel Group and ArcelorMittal would be larger.

Nippon Steel shares jumped as much as 7.4% to 3,081 yen in Tokyo on Monday morning. However, the gains moderated throughout the day, closing up just 1.7%.

Some analysts worry about the costs involved in the massive acquisition. “While the news is positive for business development, the increase in spending is worrisome,” said Hiroyasu Mori from Okachi Securities.

The CFIUS review process has added months of delays to the original timeline. Nippon Steel first announced its takeover bid in late 2023, expecting a quicker regulatory approval.

Trump had previously opposed the deal during his campaign, making Friday’s endorsement a surprise reversal. His support removes what many viewed as the final major hurdle for completion.

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