U.S. Steel Faces Pressure Amid Trump's Opposition to Acquisition

On Tuesday, U.S. Steel (NYSE: X) is expected to open lower following a significant 7% drop in share price. This decline follows a statement by President-elect Donald Trump, who expressed strong opposition to Nippon Steel's acquisition of U.S. Steel.

Trump articulated his stance via a post on Truth Social, indicating his intent to block the deal. He emphasized his commitment to strengthening American industry, stating:

> "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. Through a series of tax incentives and tariffs, we will make U.S. Steel strong and great again, and it will happen FAST! As President, I will block this deal from happening. Buyer Beware!!!"

In response, Nippon Steel issued a statement affirming its determination to expand U.S. Steel while supporting the American industrial sector, remaining resolute despite the political challenges presented by Trump’s declaration.

The market reacted swiftly to Trump’s announcement, with U.S. Steel’s shares experiencing a decline, reflecting investor concerns regarding the transaction's future.

Investors and market observers are closely monitoring developments, as the incoming administration's policies could significantly impact the steel industry and international business deals involving U.S. companies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.