Steel companies welcome President Donald Trump’s tariffs on imports from Canada and Mexico, but investors remain skeptical about the potential benefits. The main reason is that the US steel industry is a net exporter to Mexico, which could reduce the effectiveness of the tariffs through retaliatory measures.
Tariffs are not a silver bullet for resolving demand issues, as they can also lead to unintended consequences. Trump’s recent decision to pause the tariffs on Mexico for a month has added uncertainty to the market’s reaction, making it difficult to gauge the impact of tariffs on steel stocks.
Source: https://www.marketwatch.com/story/steel-stocks-among-rare-gainers-after-tariffs-but-retaliation-could-take-a-bite-7d6d0cb7