Trump to Impose 25% Tariffs on Steel and Aluminum

Published On Feb 9, 2025, 6:01 PM

President Trump announced a 25% tariff on all foreign steel and aluminum imports, which will affect countries including Canada and Mexico. This move is part of a broader strategy that may include reciprocal tariffs against U.S. trading partners in response to previous trade disputes, including tariffs on products from China and potential tariffs against Europe and Taiwan.

Stock Forecasts

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Positive

The imposition of tariffs on steel and aluminum is likely to boost domestic production but may lead to increased costs for manufacturers that rely on these metals as inputs. Investors in domestic steel and aluminum manufacturers could see positives in their stocks as demand for domestic production rises. Conversely, industries relying heavily on these metals might face pressure on their margins, possibly impacting their stock prices negatively.

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Positive

Companies with significant operations in steel and aluminum sectors may benefit from reduced foreign competition. This could lead to increased holdings and an optimistic outlook for brands such as U.S. Steel Corporation, which may see a boost in stock value.

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Negative

Investors might want to carefully assess companies that import steel and aluminum, as their costs are likely to rise due to these tariffs, potentially leading to narrower profit margins and stock declines.

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Existing American tariffs already restrict steel and aluminum shipments from China, which is now flooding other markets with its exports instead.

The president said he planned sweeping tariffs on all steel and aluminum imports on Monday and would take other action to even out tariff rates with the rest of the world later this week.

All steel and aluminium entering the US will be targeted with a 25% levy, the president says.