US Steel witnessed a significant surge of up to 5% following President Trump's declaration of tariffs on steel imports. The proposed plan includes imposing 25% tariffs on all steel and aluminum imports, thereby impacting the costs associated with constructing cars and buildings. Noteworthy steel suppliers to the US like Canada, Brazil, and Mexico are expected to be affected by this decision.
The Surge in US Steel Shares
The stock of US Steel experienced a notable increase of 5% on Monday, reaching a trading value of $38.94.
Reasons Behind the Surge
The surge in US Steel shares ensued after President Trump revealed his intentions to levy 25% tariffs on all steel and aluminum imports. The formal announcement of these tariffs is slated to take place on Monday. Consequently, various steel companies witnessed a positive upturn in their stock prices. America's largest steel producer, Nucor, saw a 7% surge in its shares, while other companies like Cleveland-Cliffs (15% increase), Steel Dynamics (6% increase), and Alcoa (4% increase) also experienced upward trends.
Implications of the Tariffs
The implementation of these tariffs is poised to elevate the costs of crucial building materials utilized in a spectrum of industries, ranging from automotive to architectural sectors. Notably, the impact is expected to be more pronounced on Canada compared to China. Canada, Brazil, and Mexico stand as the primary steel suppliers to the US, with China occupying the tenth position in the list of suppliers.
This recent imposition of tariffs on steel by President Trump echoes a similar move made in March 2018, where a 25% tariff on steel imports and a 10% tariff on aluminum imports were enforced on multiple countries, including China.
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By: mfox@businessinsider.com (Matthew Fox)
Title: US Steel Surges 5% on Trump’s Metal Tariffs Announcement
Sourced From: markets.businessinsider.com/news/stocks/us-steel-stock-price-trump-tariffs-nucor-alcoa-cleveland-cliffs-2025-2
Published Date: Mon, 10 Feb 2025 15:00:04 +0000
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