Nippon Steel Shares Rise 5%, though Trump’s Approval of U.S. Steel Deal Still Uncertain

TradingKey - After U.S. President Donald Trump hinted at his support for a planned partnership between Nippon Steel and U.S. Steel, shares of Nippon Steel rose 5% on Monday, May 26. However, Trump’s vague wording suggests that this major acquisition may still face twists and turns ahead.

On May 23, Trump posted on social media stating that after careful deliberation and negotiations, he had agreed to the planned cooperation between U.S. Steel (X) and Nippon Steel (5401). He claimed the deal would create at least 70,000 jobs, contribute $14 billion to the U.S. economy, and be largely completed within the next 14 months.

In early trading on the 26th, Nippon Steel shares rose about 5%, currently trading at JPY 3,008. On Friday, U.S. Steel shares surged by 21.24% to $52.01, reflecting strong market optimism.

A Deal That Was Once Blocked

Back in late 2023, Nippon Steel, the world’s fourth-largest steelmaker, proposed a $14.9 billion takeover of U.S. Steel. The deal was put on hold due to opposition from labor unions and national security concerns.

Trump’s recent shift in stance comes amid ongoing U.S.-Japan trade negotiations, suggesting a potential breakthrough in both economic and political dimensions.

Some analysts noted that with U.S.-Japan tariff talks underway, the situation appears to be moving toward resolution — especially compared to two months ago.

However, Trump also warned that U.S. Steel must remain under American control — otherwise he will not approve the deal.

Analysts said the latest developments are positive in the short term, but given Trump’s tendency to change positions based on rhetoric or political timing, the situation could evolve significantly — making it hard to treat this as a final green light.

This uncertainty means investors should proceed with caution, even as markets rally on the news.