Zinger Key Points
- Donald Trump may impose 25% tariffs on steel and aluminum imports.
- U.S. gets most of its imported steel from Canada, Brazil, and Mexico.
- Next: Access Our New, Shockingly Simple 'Alert System'
President Donald Trump announced on Sunday that he will impose new 25% tariffs on all steel and aluminum imports, adding to existing duties, in a further escalation of his trade policy. While this could impact domestic steel and aluminum companies, investors can consider the following list of exchange-traded funds (ETFs) to trade following the development.
What Happened: On his way to the NFL Super Bowl in New Orleans, Trump spoke to reporters on Air Force One, and said he would reveal the new tariffs on Monday, followed by reciprocal tariffs on Tuesday or Wednesday, matching the rates imposed by other countries.
Tariffs impact domestic companies by influencing costs, competitiveness, and supply chains
According to a report by the First National Bank of Omaha and the think tank Council on Foreign Relations, the negative effects of tariffs include increased input costs, reduced competitiveness, disruption in supply chains, retaliation, diversion in investment, and reduced consumer spending. On the positive side, tariffs may temporarily protect domestic industries and generate government revenue.
Investors should look out for the following metal ETFs as Trump is likely to impose tariffs on imports.
| Fund Name | AUM | Expense Ratio | Six Month Returns |
| VanEck Steel ETF SLX | $75.23 million | 0.56% | -4.88% |
| Invesco DB Base Metals Fund DBB | $112.4 million | 0.79% | 2.39% |
| iShares U.S. Basic Materials ETF IYM | $534.51 million | 0.39% | -0.68% |
| SPDR S&P Metals and Mining ETF XME | $1623.5 million | 0.35% | 5.00% |
Iron ore, a key ingredient in steelmaking, saw its prices rise 0.71% in Singapore around 3:43 p.m. local time, while aluminum futures on the Comex gained 0.49%.
Why It Matters: Although Trump initially paused tariffs on Canada and Mexico, he has renewed threats by specifically targeting metals in his media interactions on Sunday.
According to the American Iron and Steel Institute’s January data, the U.S. gets most of its imported steel from Canada, Brazil, and Mexico, followed by South Korea and Vietnam.
“Canadian steel and aluminum support key industries in the U.S., from defence, shipbuilding, and auto,” said the Canadian Minister of Innovation, Science and Industry, Francois-Philippe Champagne, in an X post.
Citing the risks of these metal tariffs, Joseph Brusuelas, the principal and chief economist at RSM US said that other countries could follow to protect their economies, and a much larger trade war could ensue after these impositions by Trump.
Read Next:
Photo courtesy: Shutterstock
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
