US Steel Shares Soar on Trump-Backed Nippon Deal

US Steel’s stock surged 21% on Friday after Donald Trump endorsed its takeover by Nippon Steel. Investors saw this as a signal that the $14.9 billion deal would go ahead.

Trump posted his support on Truth Social. He described the deal as a “planned partnership” that would create 70,000 jobs and add $14 billion to the U.S. economy.

A Shift in Tone

Trump had opposed the deal in the past. He insisted US Steel must stay under American control. But this week, he praised the merger, calling it good for jobs and growth.

Nippon Steel pledged to invest $14 billion into US Steel. This includes up to $4 billion for a new mill. Trump said most of the investment would happen within 14 months. He also plans to hold a rally at US Steel’s Pittsburgh headquarters next week.

Road to Approval

The Committee on Foreign Investment in the U.S. (CFIUS) had reviewed the deal. Earlier this year, it raised security concerns. President Joe Biden blocked the merger in January.

Nippon and US Steel sued the government, claiming the process was unfair. The Biden administration defended the review. Officials argued the deal posed risks to national security and supply chains.

This week, CFIUS told the White House that risks could be managed. That moved the final decision to Trump. His comments now suggest a green light for the takeover.

Investors Celebrate

The stock rose to $54 in after-hours trading. That’s close to the $55-per-share offer Nippon made in 2023. If the deal goes through, US Steel will become a private company. Shareholders will receive a cash payout.

Investors were thrilled by Trump’s statement. One hedge fund manager said, “We expected this move. We played it right.” Another added, “This deal keeps Pittsburgh’s steel legacy alive.”

Political Impact

The deal sparked strong reactions. Critics feared job losses and foreign control of a major U.S. company. Pennsylvania, home to US Steel, became a flashpoint.

Senator Dave McCormick praised the agreement. He said it would protect 11,000 existing jobs and create at least 14,000 new ones.

What’s Next?

The White House has not issued an official response. Still, Trump’s approval has boosted investor confidence. The deal may now move ahead quickly.

The United Steelworkers union still opposes it. On Thursday, they urged Trump to block the merger, despite the investment promises.

Final Thoughts

This deal blends foreign investment with national interests. Trump’s support may help reshape how such deals are judged. It also shows how politics can strongly influence big business moves.