In the midst of an ongoing trade war characterized by rapidly changing tariff threats, one might assume that a major commodity player like United States Steel Corporation (NYSE: X) would face significant challenges. Surprisingly, the company has managed to withstand the turbulence relatively well. As of Wednesday, shares of U.S. Steel were trading at their highest level for 2025, exceeding $45 per share. This resilience can largely be attributed to the company being part of an industry that tariffs are specifically designed to protect, thereby insulating it from the worst impacts of recent market fluctuations.

However, the situation took a sharp turn on Thursday when U.S. Steel's stock plummeted by 7.9% by 12:11 p.m. ET. This sudden decline was not due to the anticipated tariffs but rather comments made by President Donald J. Trump regarding a potential acquisition of the company by Japan's Nippon Steel. For over a year, Nippon Steel has expressed interest in acquiring U.S. Steel, a move that Trump has opposed vehemently.

During a press conference on Wednesday, President Trump reiterated his stance against the sale, stating emphatically, "We don't want to see it go to Japan." Yet, he added a layer of confusion to the debate by simultaneously expressing a positive sentiment towards Japan, saying, "We love Japan" and, "we're working with them." This contradictory messaging has left investors in a state of uncertainty, pondering what the President truly intends for the future of U.S. Steel and whether he will ultimately block Nippon Steel's acquisition.

Investors are now considering how to approach U.S. Steel stock in light of this news. Reports suggest that Nippon Steel is offering approximately $14 billion for U.S. Steel, which currently holds a market capitalization of around $9.5 billion. Should the acquisition proceed, it would deliver a significant windfall to shareholders, yielding nearly a 50% profit almost immediately.

But what if the deal falls through? In such a scenario, U.S. Steel is expected to continue benefiting from the tariffs imposed by President Trump on imported steel. These tariffs effectively increase the cost of foreign steel, allowing U.S. Steel to elevate its prices and enhance its profitability. Even without the tariffs, U.S. Steel has demonstrated profitability and trades at a ratio of less than 25 times its trailing earnings.

In summary, investors in U.S. Steel may have multiple avenues for potential success. Given the current conditions and the potential for significant gains, now might be an opportune time to consider purchasing stock in U.S. Steel.

However, before making any investment decisions, potential investors should carefully weigh their options. The Motley Fool Stock Advisor analyst team recently identified what they believe are the ten best stocks to buy right now, and notably, United States Steel was not included in this list. Past recommendations from Stock Advisor have proven lucrative; for instance, had you invested $1,000 in Netflix in December 2004, that investment would have grown to an astonishing $509,884! Similarly, an investment in Nvidia following its April 2005 recommendation would have ballooned to $700,739.

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