Zinger Key Points
- Steel and aluminum stocks surged premarket Monday after Trump announced plans to reintroduce 25% tariffs on imported metals.
- U.S. Census Bureau: $11.2B in steel imports from Canada, $6.5B from Mexico in 2024—tariffs could spark trade retaliation.
- Next: Access Our New, Shockingly Simple 'Alert System'
Steel and aluminum stocks jumped Monday in premarket trading after President Donald Trump said he would reintroduce 25% tariffs on imported metals.
The move aims to reshape global trade and revive domestic production, but also reignites trade tensions that defined his first term.
What Happened: In a statement aboard Air Force One on Sunday, Trump said the tariffs would apply to all countries, without specifying when they would take effect.
Markets reacted swiftly, with shares of major American steel and aluminum producers rallying ahead of the opening bell
Steel and aluminum stocks soared in premarket trading as investors quickly priced in the potential benefits for domestic metal producers.
Century Aluminum Co. CENX gained 10.4%, Nucor Corp. NUE climbed 7.2%, and Cleveland-Cliffs Inc. CLF rose 7%. Alcoa Corp. AA up 5.2% and Kaiser Aluminum Corp. KALU gained 2.5%.
United States Steel Corp. X, which has faced pressure from foreign competition, advanced 4.3%, while Steel Dynamics Inc. STLD added 5.4%.
Why It Matters: Tariffs have major implications for U.S. manufacturers, foreign exporters, and global supply chains. They also risk retaliatory measures from key U.S. trading partners.
Trump first imposed tariffs on steel and aluminum in 2018, citing national security concerns. Those duties—25% on steel and 10% on aluminum—aimed to protect domestic manufacturers from what he called unfair competition, particularly from China.
The policy sparked backlash from U.S. allies, including Canada and Mexico, but also drove up prices, boosting profits for domestic producers.
U.S. Census Bureau data shows that in 2024, the U.S. imported:
- $11.2 billion worth of steel from Canada; $9.5 billion worth of aluminum
- $6.5 billion from Mexico; just under $1 billion in aluminum from Mexico.
“Canadian steel and aluminum support key industries in the U.S., from defense and shipbuilding to auto manufacturing,” Canadian Innovation Minister Francois-Philippe Champagne posted on X, adding that “We will continue to defend Canada, our workers and our industries.”
European steelmakers warned that tariffs could push excess global supply toward their markets.
“The measures would lead to further volume diversions to Europe, increasing import pressure due to overcapacity from China and other countries,” said Olaf Reinecke, CEO of German steelmaker Salzgitter.
What’s Next: Trump indicated plans to introduce reciprocal tariffs in the coming days, matching rates imposed by other countries on U.S. goods. These measures could take effect almost immediately.
“After the back and forth on Canada and Mexico tariffs, markets have distanced themselves from trading any tariff announcements,” said Robin Brooks, economist at the Brookings Institution. “Tariffs are not priced.”
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