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- US Steel shares rose as much as 5% after Trump announced tariffs on steel imports.
- Trump plans 25% tariffs on all steel and aluminum imports, affecting building costs for cars and buildings.
- Canada, Brazil, and Mexico are top steel suppliers to the US.
The move: Shares of US Steel jumped as much as 5% on Monday to trade at $38.94.
The chart:
Why: The move came after President Trump told reporters on Air Force One on Sunday that he planned to impose 25% tariffs against all imports of steel and aluminum.
The tariffs are expected to be formally announced on Monday. Shares of America’s largest steel company, Nucor, jumped 7%, while other steel and aluminum companies also jumped. Cleveland-Cliffs rose nearly 15%, Steel Dynamics was up 6%, and Alcoa, rose 4%.
What it means: The tariffs will increase the cost of key building inputs for everything from cars to skyscrapers, and it will probably hurt Canada more than China.
Canada, Brazil, and Mexico are the top three steel suppliers to the US, and China is the 10th largest supplier.
This isn’t the first time Trump imposed tariffs on steel. In March 2018, Trump imposed a 25% tariff on steel imports and a 10% tariff on aluminum imports from various countries, including China.
What the pros are saying: “Planned US steel and aluminum tariffs would hit Canada and Mexico hardest, if they can’t find other outlets; the US is their primary buyer. Still, as the US administration sees it, building new steel and aluminum capacity in the US is a critical national security imperative – that’s the real reason for these tariffs,” Thierry Wizman, strategist at Macquarie, said in a Monday note.
