Trump Boosts U.S. Steel

📈 U.S. Steel rockets over 21% as Trump blesses $14B Nippon deal and job boom.

Author

Ankit Sinha
May 26, 2025

Silver banana goes to…




In this issue of the peel:

  • 📈 U.S. Steel rockets over 21% as Trump blesses $14B Nippon deal and job boom.

  • 📱Trump threatens 25% tariff on foreign-made iPhones—Apple drops 3% on supply chain fears.

  • 🚗 China’s BYD overtakes Tesla in Europe, becoming the top EV seller on the continent for the first time.

Market Snapshot

Banana Bits

The Daily Poll

What would make the Steel deal a “win” for America?

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Macro Monkey Says

Trump to Apple: Build in U.S. or Pay Up

On May 23, 2025, President Trump intensified his push for domestic manufacturing by threatening a 25% tariff on iPhones produced outside the United States. In a post on Truth Social, he stated, “I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” This announcement caused Apple’s stock to drop approximately 3% on the day.

Apple has been diversifying its manufacturing, notably increasing production in India to mitigate risks associated with U.S.-China trade tensions. 

However, Trump's latest tariff threat challenges this strategy, pressuring Apple to consider shifting more production to the U.S. Industry experts argue that relocating iPhone manufacturing to the U.S. would be logistically complex and financially burdensome, potentially taking years and significant investment.

The broader market reacted negatively to the tariff threats, with major indexes declining and investors seeking safe-haven assets like government bonds and gold. 

The proposed tariffs are part of Trump's broader strategy to encourage domestic manufacturing and address trade imbalances. However, critics argue that such measures could lead to increased consumer costs and disrupt global supply chains.

The Takeaway?

President Trump's proposed 25% tariff on foreign-made iPhones pressures Apple to shift manufacturing to the U.S., challenging its global supply chain strategy. The announcement led to a decline in Apple's stock and raised concerns about potential consumer cost increases and broader market volatility.

Career Corner

Question

One of the responses I got from a cold email was basically just "if you're interested in the position, send me your CV." This is definitely positive, but a phone call would still help me learn about the bank and allow me to speak on that in an interview. Should I just say yes, I'm interested, and send him the CV, or should I ask again for a quick phone call?

Answer

You definitely have to respond with your CV, and you can follow up by saying you would still love to chat if they have time.

Head Mentor, WSO Academy

What's Ripe

United States Steel Corp (X) 21.2%

  • United States Steel Corp. shares surged 21.2% to close at $52.01 on Friday, following President Trump's announcement of a strategic partnership between U.S. Steel and Japan's Nippon Steel. 

  • The alliance, which includes a $14 billion investment over the next 14 months and creating 70,000 jobs, alleviated prior concerns about foreign ownership. The market responded positively to the news, with U.S. Steel's stock reaching its highest level since 2011.

Cameco Corp (CCJ) 11.1% 

  • Cameco Corp. experienced an 11.1% increase in its stock price. The rise was driven by growing demand for nuclear energy, particularly from AI companies like Amazon and Google investing in small modular reactors. 

  • Additionally, supply constraints in the uranium market, exacerbated by geopolitical tensions and production cuts from major suppliers, have contributed to the upward momentum in uranium prices, benefiting producers like Cameco.

What's Rotten

Workday (WDAY) 12.5%

  • Workday Inc. shares fell 12.5% after it reported its first-quarter fiscal 2026 earnings. Despite beating expectations with adjusted earnings per share of $2.23 and revenue of $2.24 billion, investor concerns about potential reductions in IT spending, particularly in the higher education sector due to federal funding cuts, weighed on the stock. 

  • Analysts, however, viewed the market's reaction as an overreaction, with many maintaining Buy ratings.

Burlington Stores (BURL) 9.4%

  • Burlington Stores Inc. saw its stock decline by 9.4%. The drop followed the company's earnings report, which, while showing growth, may have fallen short of investor expectations. 

  • Analysts had previously been optimistic about Burlington's prospects, citing strong consumer demand for value and strategic store openings. However, the latest results suggest that the company may face challenges in maintaining its growth trajectory.

Thought Banana

Steel Deal Gets Trump’s Thumbs-Up

In a surprising turn of events, former President Donald Trump has conditionally endorsed Nippon Steel's $14.1 billion acquisition of U.S. Steel, framing it as a "partnership" rather than a full takeover. This marks a significant shift from his earlier opposition to the deal. 

The proposed agreement includes a commitment from Nippon Steel to invest $14 billion into U.S. operations over the next 14 months, aiming to modernize facilities and create approximately 70,000 jobs. U.S. Steel would retain its headquarters in Pittsburgh, and a U.S.-majority board would oversee operations to address national security concerns.

The announcement has generated optimism among investors, with U.S. Steel's stock surging over 21% following the news. However, the United Steelworkers union remains opposed, citing concerns over foreign ownership and potential impacts on labor agreements. 

Despite these concerns, many workers in Pennsylvania have expressed cautious support, viewing Nippon Steel as a potential savior capable of revitalizing the struggling steelmaker.

While the deal still faces regulatory hurdles, including a review by the Committee on Foreign Investment in the United States (CFIUS), Trump's endorsement signals a possible path forward. The outcome of this acquisition could have significant implications for the U.S. steel industry and its workforce.

The Takeaway?

Trump's conditional approval of Nippon Steel's acquisition of U.S. Steel marks a notable policy shift, potentially revitalizing the American steel industry through significant investment and job creation. While regulatory reviews and union concerns persist, the deal's progression could reshape the future of U.S. steel manufacturing.

The Big Question: Should foreign companies be allowed to acquire major U.S. industrial firms if they promise investment and jobs?

Banana Brain Teaser

Previous

What number is 108 more than two-thirds of itself?

Answer: 324

Today

Each person who attended a company meeting was either a stockholder in the company, an employee of the company, or both. If 62% of those who attended the meeting were stockholders and 47% were employees, what percent were stockholders who were not employees?

Send your guesses to [email protected]

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