Trump Blocks $14 Billion Nippon Steel Takeover of U.S. Steel in 2025
In 2025, former President Donald Trump pledges to halt Nippon Steel's $14 billion acquisition of U.S. Steel, emphasizing protection of American steel workers and industry.
Key Highlights
- U.S. Steel shares dropped 7% in early trading following Trump's announcement to block the $14 billion acquisition by Japan's Nippon Steel.
- Trump declared on his Truth Social platform his firm opposition to the foreign takeover, reinforcing his stance against the deal.
- U.S. Steel stock has declined over 15% year-to-date as of Monday.
Shares of U.S. Steel (X) experienced a 7% decline in premarket trading on Tuesday after former President Donald Trump vowed to prevent Nippon Steel’s planned $14 billion purchase of its American competitor.
On his Truth Social account, Trump stated he is "completely opposed" to the acquisition by a foreign company, echoing his earlier objections. The Japanese firm agreed to acquire U.S. Steel last year but has encountered resistance from the current administration, which extended the foreign security review period for the transaction.
"Through a combination of tax incentives and tariffs, we will revitalize U.S. Steel swiftly and make it great again," Trump declared. "As President, I will ensure this deal does not proceed."
Both Trump and White House officials argue the acquisition could negatively impact American workers.
CEO Warns of Plant Closures Without Deal
U.S. Steel CEO David Burritt has warned that without the $3 billion investment promised by Nippon Steel contingent on the deal’s approval, the company may need to close plants and relocate its headquarters from Pittsburgh.
Requests for comment from U.S. Steel and Nippon Steel were not immediately returned.
U.S. Steel shares have fallen more than 15% so far this year through Monday.
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