TLDR

Table of Contents

US Steel (X) stock surged 16.22% on Monday to $44.50 after Trump ordered a new review of Nippon Steel’s acquisition bid
The White House directed CFIUS to review the $14.9 billion deal that was previously blocked by Biden
Trump gave the committee 45 days to assess if measures suggested by both companies mitigate national security risks
US Steel commended Trump’s decision, calling Biden’s previous blocking “unlawful”
Trump previously opposed the deal but suggested in February he wouldn’t mind Nippon acquiring a minority stake

US Steel shares soared on Monday as President Donald Trump ordered a fresh review of Nippon Steel’s $14.9 billion acquisition bid. The stock jumped 16.22% to close at $44.50 after news broke that the White House had directed the Committee on Foreign Investment in the United States (CFIUS) to reassess the deal.

This review breathes new life into an acquisition that was previously blocked by former President Joe Biden in January. Biden had cited national security concerns, stating that steel producers and American steelworkers are “the backbone of our nation.”

Trump’s order gives CFIUS 45 days to evaluate whether measures proposed by US Steel and Nippon Steel would properly address any national security risks associated with the deal. This development marks a potential turning point for the long-pending agreement.

Trump’s Evolving Stance

Trump’s position on the acquisition appears to have softened over time. While initially opposing the deal, he indicated during a February meeting with Japanese Prime Minister Shigeru Ishiba that he wouldn’t object to Nippon acquiring a minority stake in US Steel.

The presidential action issued Monday directs CFIUS to help determine “whether further action in this matter may be appropriate.” This language suggests Trump is open to finding a path forward for the transaction.

US Steel management welcomed the review. The company issued a statement commending Trump’s order, saying it “validates our board’s bold decision to challenge Biden’s unlawful order.”

Market Context

Monday’s stock surge came against the backdrop of a mixed day for the broader market. Investors remained cautious due to escalating global trade tensions, particularly after Trump threatened to impose another 50% tariff on China if they don’t withdraw certain countermeasures.

While the Dow Jones declined by 0.91% and the S&P 500 dropped by 0.23%, the tech-heavy Nasdaq managed a slight gain of 0.10%. US Steel was among the top performers, bucking the overall market pessimism.

The stock’s performance placed it at the top of Monday’s strongest gainers among companies with at least $2 billion in market capitalization and $5 million in trading volume.

Deal Background and Future Prospects

The proposed $14.9 billion acquisition has faced substantial political hurdles since its announcement. Biden’s administration blocked the deal in January, expressing concerns about foreign control of one of America’s largest steel producers and potential threats to critical supply chains.

Nippon Steel’s bid represents a major attempt at consolidation in the global steel industry. If approved, the Japanese company would gain a stronger foothold in the American market through ownership of an iconic U.S. industrial brand.

The 45-day review period will be closely watched by investors and industry analysts. CFIUS will need to evaluate the companies’ proposed mitigation measures and make a recommendation on whether they sufficiently address national security concerns.

US Steel’s strong stock reaction suggests investors see an increased probability of the deal moving forward under the Trump administration’s review. However, final approval remains uncertain as national security and political considerations continue to play a major role.

The steel industry has been a focus of Trump’s economic and trade policies. During his first term, he imposed tariffs on steel imports under Section 232 of the Trade Expansion Act, citing national security concerns.

Trump’s willingness to reconsider the Nippon Steel acquisition comes as he has threatened new tariffs against China and emphasized his “America First” trade stance on other fronts.

For US Steel shareholders, Monday’s stock surge represents a welcome development after months of uncertainty surrounding the deal’s prospects. The company’s stock had experienced volatility as the acquisition’s regulatory fate remained unclear.

Industry observers note that any final decision will need to balance concerns about foreign ownership with potential benefits of increased investment in US Steel’s operations and competitiveness.

The coming weeks will be critical as CFIUS conducts its review and formulates recommendations for the president. Market watchers will be looking for any signals from the administration about the likely outcome.

Trump’s final decision on the acquisition could have broader implications for foreign investment in U.S. industrial sectors, particularly those considered important to national security.

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