Tariffs an ‘incremental negative’ for U.S. steel companies, says UBS

President Trump’s “Liberation Day” tariffs, including 10% tariffs for all countries and additional reciprocal tariffs across 185 countries, are an “incremental negative” for U.S. steel companies on greater demand concerns, UBS analyst Andrew Jones tells investors in a research note. The additional, larger than expected tariffs bring a greater risk of demand destruction, though there is scope of negotiation and roll backs, the firm says, adding that there is also no incremental tariff on autos beyond the 25% announced previously, which could reduce North America steel production by 1.5M units. The firm maintains Buy ratings on Steel Dynamics (STLD) and Nucor (NUE) and a Sell rating on Posco (PKX).