President Donald Trump’s trade war with the world continues with plans to announce 25% tariffs on all steel and aluminum imports to the U.S. today. This is part of the President’s bold strategy to tax other countries through tariffs while promising to reduce taxes on U.S. citizens. Some tariffs have already been introduced while President Trump reached agreements with other countries, such as Canada and Mexico, to delay potential tariffs.
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President Trump is also prepared for countries to retaliate with their own tariffs. The President said he will announce plans on Tuesday and Wednesday for additional tariffs on countries that attempt to target the U.S. with tariffs. This comes as the European Union considers striking back with its own tariffs on the U.S.
What This Means for Steel & Aluminum Stocks
U.S. steel stocks rose on Monday alongside President Trump’s tariff plans as U.S. Steel (X) up 3.2%, Nucor (NUE) rising 5.63%, and Cleveland-Cliffs (CLF) soaring 11.6% today. Aluminum stocks are also climbing with Century Aluminum (CENX) and Alcoa (AA) gaining 15.46% and 3.63%, respectively.
On the flip side of this, steel and aluminum stocks outside the U.S. are falling on news of Trump’s tariff plans. This has shares of stocks in South Korea and Europe dropping this morning as investors anticipate tariffs will eat into the companies’ profits.
President Trump also updated the proposed merger between U.S. Steel and Japan’s Nippon Steel (NISTF). The President won’t allow a sale of U.S. Steel but will let Nippon Steel invest in it. He claims U.S. Steel is about to see major benefits from his tariffs and shouldn’t be sold.
Which Steel & Aluminum Stocks Are the Best Investments?
Turning to the TipRanks stock comparison tool, traders will see which shares are the best investments today. X, NUE, CLF, CENX, and AA shares all have Moderate Buy ratings from analysts. Of these, CLF, CENX, and AA offer the strongest upside potential ranging from 25% to 27%.
