In a significant development late in the trading session, shares of US Steel surged over 20% after President Donald Trump publicly voiced support for the embattled deal between US Steel and Japan’s Nippon Steel. Posting on his Truth Social account, Trump declared that the deal would keep the American steel industry firmly rooted in the United States, while creating an estimated 70,000 jobs and injecting $14 billion into the economy.
Trump Endorses US Steel-Nippon Deal, Predicts $14 Billion Economic Boost
In a major turn of events, US Steel shares skyrocketed over 20% late in the trading session after President Donald Trump announced his support for the company’s proposed partnership with Japan’s Nippon Steel. Trump’s post on Truth Social claimed the merger would create at least 70,000 jobs and contribute $14 billion to the U.S. economy, with most of the benefits expected over the next 14 months.
President Trump said: “I am proud to announce that, after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh. For many years, the name “United States Steel” was synonymous with Greatness, and now, it will be again. This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add 14 Billion Dollars to the U.S. Economy. The bulk of that Investment will occur in the next 14 months. This is the largest Investment in the History of the Commonwealth of Pennsylvania. My Tariff Policies will ensure that Steel will once again be, forever, MADE IN AMERICA. From Pennsylvania to Arkansas, and from Minnesota to Indiana, AMERICAN MADE is BACK. I will see you all at US Steel, in Pittsburgh, on Friday, May 30th, for a BIG Rally. CONGRATULATIONS TO ALL!”
However, Many Analysts believe “It is not feasible for U.S. Steel to add 70,000 jobs in 2025. A more realistic scenario, if the Nippon deal proceeds or tariffs boost demand, might see a few thousand direct jobs created over several years, supplemented by indirect jobs in related sectors. The steel industry’s structural shift toward automation, combined with labor shortages and modest demand growth, makes a workforce expansion of this magnitude implausible in the near term”
US Steel Deal Gets Bipartisan Pushback Before Trump’s Approval
Despite today’s backing, the US Steel-Nippon deal had previously met resistance from both ends of the political spectrum. Grasso, a market commentator, noted that both President Biden and President Trump initially appeared opposed to allowing the deal to proceed. However, with US Steel trading below the original deal price of $55, market pressures made intervention necessary.
US Steel Shareholders Eye Exit Near $55
Grasso, who has held US Steel stock since it traded at $30, sees the $55 level as a ceiling. “This is the top for me,” he said, indicating he plans to sell near that price. He doubts the stock will climb much higher in the short term, dismissing the possibility of a $60–$65 valuation.
US Steel Arbitrage Traders Lock in Gains
Market analyst Mike said that arbitrage (arb) traders are following a common playbook—owning US Steel shares while selling upside call options near the $55 mark. “That’s going to be the lid on it,” he noted, suggesting that there’s little chance of another buyer entering the fray in the current environment.
US Steel Jobs Projection Faces Skepticism
Mike also questioned Trump’s claim that the US Steel deal will lead to 70,000 new jobs. “They had 22,053 employees at the end of 2024. I’m not sure how this leads to 70,000 jobs,” he said. While the core steel business is reportedly improving, doubts remain about the deal’s long-term value.
With President Trump’s endorsement, the US Steel-Nippon merger appears to be back on track, lifting the stock and boosting investor sentiment. But while the near-term outlook is positive for traders, many remain cautious about the broader implications, especially the ambitious job creation figures and future growth potential.