Trump's tariff policy may bring benefits, U.S. steel stocks rise in pre-market trading
Trump's tariff policy may benefit American steel producers, leading to a rise in U.S. steel stocks in pre-market trading. US Steel rose over 6%, Nucor rose nearly 11%, and Cleveland-Cliffs rose over 11%. Trump imposed a 25% tariff on imported steel in 2018, which the Biden administration revoked in 2021. If Trump is elected, he will block the deal for Nippon Steel to acquire US Steel
According to Zhitong Finance APP, as Republican presidential candidate Trump announced his victory, as of the time of writing, US Steel (X.US) rose over 6% in pre-market trading on Wednesday, as the market expects that if Trump implements tariffs on imported steel like he did in 2018, this American steel producer will benefit.
In addition to US Steel, other US steel stocks also saw gains. As of the time of writing, in pre-market trading on Wednesday, Nucor (NUE.US) rose nearly 11%, Cleveland-Cliffs (CLF.US) rose over 11%, Steel Dynamics (STLD.US) rose nearly 9%, and Reliance (RS.US) rose nearly 3%. Additionally, Alcoa (AA.US) rose over 2%, and Century Aluminum (CENX.US) rose over 3%.
It is reported that the Trump administration imposed a 25% tariff on imported steel and a 10% tariff on imported aluminum in 2018. The World Trade Organization stated at the time that these tariffs violated global trade rules. These tariffs were later lifted by the Biden administration in 2021.
It is worth mentioning that Trump previously stated that if he becomes president, he will block the nearly $15 billion acquisition of US Steel by Nippon Steel. Currently, the review decision of this transaction by the Committee on Foreign Investment in the United States (CFIUS) has been postponed until after the US presidential election