U.S. Steel shares plunged 7.9% after President Trump reiterated his opposition to the company’s acquisition by Japan’s Nippon Steel, despite earlier authorizing a new national security review that had temporarily boosted investor optimism.
“We love Japan, but U.S. Steel is a very special company,” President Trump stated Wednesday from the Oval Office. “We don’t want it to go to Japan or any other place, and we’re working with them.” The president has suggested he would favor a minority stake by Nippon Steel rather than an outright purchase of the iconic American steelmaker.
The Nippon deal saga has taken numerous turns since its December 2023 announcement at $55 per share. The Biden administration moved to block the transaction on national security grounds—a decision U.S. Steel and Nippon are currently challenging in court. Meanwhile, activist investor Ancora has nominated a slate of directors as part of its own plan for the company that includes asset sales to fund investments.
While the merger’s fate remains uncertain, President Trump’s 25% import tariffs on steel have boosted domestic prices to above $900 per ton, up from approximately $700 at the end of 2024—a significant increase from when Cleveland-Cliffs made its initial $35 per share bid for U.S. Steel in August 2023.
U.S. Steel (D1)
The stock is trading above the 61.8% Fibonacci retracement level. Bulls will attempt to break above the 78.6% retracement level, which has previously acted as a strong reversal zone. The RSI is showing bearish divergence with a lower high, while the MACD remains narrow, indicating indecision. Source: xStation
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