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U.S. Steel Stock Price (NYSE: X) Flying High on Latest Tariff Turbulence

Asktraders News Team trader
Updated 2 Jun 2025

United States Steel Corporation (NYSE: X) has seen it's stock rally recently, hitting multi-year highs on Friday at $54.03, buoyed in part by surging demand, a potential acquisition, and, most recently, the resurrected specter of trade wars.

President Trump's recent comments surrounding a potential doubling of steel tariffs to 50% has sent ripples through global markets, creating both opportunity and uncertainty for the iconic American steelmaker.

A one-month return of 22.18% and a 65% gain YTD paint an impressive picture for US Steel bulls. The stock's five-year return, a staggering 428.16%, underscores the dramatic turnaround.

However, the doubling of steel tariffs introduces a significant variable into the equation. Trump's announcement, made during a visit to a U.S. Steel factory, aims to protect American steelworkers and incentivize domestic production. While the move has been lauded by some industry leaders and labor representatives, concerns linger about potential retaliatory measures from trading partners and the broader economic consequences.

South Korea, a major steel exporter to the U.S., has already expressed its intention to mitigate the impact through trade discussions. The weakening U.S. dollar following the tariff announcement suggests that investors are wary of potential economic headwinds.

The proposed acquisition of U.S. Steel by Japan's Nippon Steel adds another layer of complexity. The $15 billion deal, while facing regulatory scrutiny, has garnered support from U.S. Steel workers and, notably, President Trump himself. The acquisition is viewed by many as a way to ensure the long-term viability of U.S. Steel, providing access to capital and technology needed to compete in the global market. Trump's vocal support for the deal, coupled with the increased tariffs, suggests a strategy of simultaneously protecting domestic producers and fostering strategic alliances.

🟩 The Bull Case for NYSE: X

  • Increased Domestic Demand: Tariffs shield U.S. Steel from foreign competition, potentially boosting domestic sales and prices.
  • Nippon Steel Acquisition: Access to capital and technology through the acquisition enhances long-term competitiveness.
  • Infrastructure Spending: Continued government investment in infrastructure projects fuels demand for steel.

🟥 The Bear Case for NYSE: X

  • Retaliatory Tariffs: Trade disputes with other countries could negatively impact U.S. Steel's export markets.
  • Economic Slowdown: A weakening global economy could reduce demand for steel, impacting revenue and profitability.
  • Acquisition Risks: Regulatory hurdles and integration challenges associated with the Nippon Steel deal could weigh on the stock.
  • High Valuation: Trading near the upper end of analyst price target range suggests limited upside potential.

The company's recent success is undeniable, but the confluence of trade policy changes, potential acquisition, and broader economic uncertainties creates a complex and potentially volatile environment.

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