U.S. Steel Stock Falls as Trump Pledges to Block Nippon Steel Acquisition

United States Steel Corporation‘s X stock is moving lower Tuesday after President-elect Donald Trump reiterated his opposition to the proposed acquisition of the company by Japan’s Nippon Steel Corporation, a deal valued at approximately $14.1 billion.

In a Truth social post, Trump declared that he would block the deal if it moves forward, citing his dedication to strengthening the domestic steel industry.

Trump highlighted his intent to use tax incentives and tariffs as tools to reinforce U.S. Steel’s position in the global market, stating that such measures would help restore the company to its former prominence. His message, which included a stark warning of “buyer beware” directed at Nippon Steel, underscored his resistance to foreign ownership of a critical American industry.

The acquisition has sparked controversy, drawing opposition from labor unions, lawmakers and the current Biden administration. Critics argue that the deal could jeopardize U.S. jobs and strategic interests. Conversely, Nippon Steel has defended the acquisition, claiming it would create jobs and improve competitiveness against China’s steel sector.

Market analysts have noted that Trump's election victory and his focus on domestic industry could result in increased support for U.S.-based steel manufacturers. Anticipated policies under his administration, such as the imposition of new tariffs and deregulation, could influence trade dynamics and potentially benefit domestic producers. However, the uncertainty surrounding the Nippon Steel deal has introduced volatility into the market, directly impacting U.S. Steel’s stock performance.

X Price Action: X shares were down 8.33% at $37.54 at the time of writing, according to Benzinga Pro.

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