Shares of several U.S. metal producers fell in pre-market trading Friday after reports that President Donald Trump’s administration may scale back certain tariffs on steel and aluminum goods.
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The shares of the following companies fell as of 7:17 a.m. EST:
- Nucor (NUE) — 3.62% to $181.97
- Steel Dynamics (STLD) — 5.64% to $188.26
- Reliance Steel (RS) — 1.75% to $350.01
- Cleveland-Cliffs (CLF) — 2.51% to $10.49
- ArcelorMittal (MT) — 2.29% to $60.18
Trump Eyes Tariff Ease for Steel and Aluminum
According to the Financial Times, administration officials are worried about the impact of recent tariff hikes on consumer prices for products such as food-and-drink cans and pie tins. However, the deliberation comes as the U.S. midterm elections scheduled for November draw near, with the cost of living at the top of the agenda.
In June, the Trump administration raised duties on imported steel and aluminum products to 50% globally, excluding the UK. In the following month, the scope of these tariffs was expanded to more than 400 derivative products, including appliances, motorcycles, wind turbines, mobile cranes, railcars, and electric vehicle parts.
A Boost for Metals Producers?
Depending on the scale of the rollback, access to cheaper imported steel and aluminum products could make it harder for domestic producers to pass on costs to final consumers, thereby putting pressure on their margins.
Reports have noted that parts of the arrangement being considered include exempting some goods from the tariffs and suspending the inclusion of new categories of goods on the list.
The Trump administration has deployed tariffs as a key part of its international trade policy, with higher levies targeted at critical industries such as semiconductors and pharmaceuticals. Last month, the administration rolled out a 25% tariff on “certain advanced AI chips” but announced a one-year delay to the tariff raise on furniture, kitchen cabinets, and vanities.
What Are the Best Steel and Aluminum Stocks to Buy?
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