Steel stocks are a hot topic on Monday as investors prepare for price increases alongside President Donald Trump’s tariffs on Canada and Mexico. President Trump will place 25% tariffs on all exports from these countries and a 10% tariff on China’s exports starting Tuesday. Manufacturers expect this to increase steel prices in the U.S. as companies raise theirs to match imported steel prices.
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With these increases, consumers can expect the price of goods made with steel to increase. This is true for goods made with other metals, such as aluminum, which are expected to rise with the introduction of these tariffs.
What This Means for Steel Stocks
Steel stocks will likely benefit from the increased tariffs on Canada, Mexico, and China. The tariffs allow these companies to boost prices, enhance profits, and drive businesses to purchase their steel products locally instead of from foreign companies. That’s exactly what U.S. steel company executives were hoping for as they were vocal supporters of similar tariffs introduced by Trump in 2018.
Investors in U.S. steel stocks are already seeing these benefits with shares rising today. United States Steel (X) stock is up 1.22%, Nucor (NUE) stock is increasing 3.73%, and Steel Dynamics (STLD) stock is jumping 1.7% as of this writing.
U.S. Steel Stocks Comparison
With growing potential in U.S. steel stocks, investors likely wonder which ones are the best to invest in. The options mentioned above are obvious potential investments, as is Cleveland-Cliffs (CLF) despite its drop today.
Each of these four stocks have Moderate Buy ratings, but the upside potential between them varies greatly. CLF stock offers the best potential growth at 30.35% upside, with NUE next at 18.74%, STLD following at 14.13%, and X in last place at 6.89%.
