U.S. Steel shares drop as Trump vows to block Nippon deal

On Tuesday, U.S. Steel (NYSE: X) is expected to open at a lower value after a significant 7% drop in share price. This decline comes in the wake of a statement made by President-elect Donald Trump, who expressed firm opposition to the acquisition of U.S. Steel by Nippon Steel of Japan.

Trump articulated his stance through a post on Truth Social, indicating his intent to prevent the deal from proceeding. He emphasized his commitment to reinforcing American industry by 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 to the unfolding situation, Nippon Steel has issued a statement asserting their determination to expand U.S. Steel in a way that bolsters the American industrial sector. The company remains resolute despite the political challenges signaled by Trump's recent declaration.

The market's reaction to Trump's announcement was swift, with U.S. Steel's shares taking a hit, reflecting investors' concerns over the future of the proposed transaction.

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

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Source: Investing.com