President Trump signed an executive order Monday evening, setting the stage for tariffs on steel and aluminum imports. The new tariffs, which are broader than the 2018 versions, will cover mid-stage products such as slabs or extrusions. This move is expected to have a significant impact on the metal markets.
Steel Dynamics (STLD) and Century Aluminum (CENX) are among stocks that jumped after Trump announced the plan. Steel Dynamics rose 4.9% and Century Aluminum soared 10.2%. Nucor (NUE), Alcoa (AA), and Cleveland-Cliffs (CLF) also saw significant gains, with Nucor climbing 5.65%, Alcoa rising 2.2%, and Cleveland-Cliffs powering up 17.9%.
The new tariffs will impose a 25% tax on all steel imports, including those from Canada, Brazil, and Mexico, which were previously exempted through agreements. The current 10% tax on aluminum imports is set to jump to 25%. Industry experts say this move will have short-term pain for the aluminum industry, as imports from Canada are essential for the primary aluminum market in the US.
Trump has also indicated that he plans to announce more “reciprocal” tariff measures, possibly Tuesday or Wednesday, matching tariffs currently imposed by trading partners on their imports from the US. This move is part of Trump’s policy shake-up promises and is expected to have significant implications for the metal markets.
Source: https://www.investors.com/news/economy/trump-tariffs-steel-aluminum-imports-nucor-alcoa-stld-stocks