Why United States Steel (X) Is Advancing Today

United States Steel (X) is climbing 4% today after President Donald Trump stated that Nippon Steel would invest in the company but not acquire it. Additionally, Trump announced that he would impose a 25% tariff on steel imports into the U.S..

The New Plan for United States Steel

Speaking on Friday, Trump reported that Japan’s Nippon Steel would give up its efforts to buy United States Steel. The Japanese firm will instead “invest heavily” in X but refrain from taking a stake of over 50% in it, the president said.

An aerial view of an industrial plant manufacturing welded pipes and tubes from stainless steel and galvanized carbon.

Trump noted that he would meet this week with Nippon’s head to discuss the matter.

Japanese Prime Minister Shigeru Ishiba appeared to endorse Trump’s plan yesterday, saying “This isn’t a simple purchase of US Steel. It will continue to be an American company, managed by Americans and have American employees.”

Trump Intends to Levy New Tariffs on Steel Imports

The president said yesterday that he would unveil today a 25% tariff on all steel imports into the U.S. “Any steel coming into the United States is going to have a 25% tariff,” he said yesterday. The move could enable United States Steel and other American steelmakers to charge more for their steel and sell more of the metal.

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Disclosure: None. This article is originally published at Insider Monkey.