Steel stocks spike as Trump reportedly readies to slap tariffs on the US’s closest allies

A worker walks between rolls of steel ahead of a tour by Republican presidential candidate and former Massachusetts Governor Mitt Romney of Gregory Industries during a campaign stop in Canton, Ohio March 5, 2012.

caption
A worker walks between rolls of steel ahead of a tour by Republican presidential candidate and former Massachusetts Governor Mitt Romney of Gregory Industries during a campaign stop in Canton, Ohio March 5, 2012.
source
REUTERS/Brian Snyder

Shares of US steel manufacturers are jumping in early trading Thursday after the Wall Street Journal reported President Donald Trump is ready to announce tariffs on EU, Mexican, and Canadian steel imported into the country.

The tariffs would include a 25% tax on steel and 10% on aluminum imported into the US, and that is sending US steel manufacturers higher. Here’s the scoreboard:

US Steel Corporation: +7.5%

Nucor: +2.7%

Steel Dynamics: +3.1%

Back in March, when the tariffs were first discussed, Cowen and Company analyst Novid Rassouli told Business Insider they would make US Steel’s operating income “laughably high,” and that the company’s EBITDA “would be over double what it is right now.”

US Steel

source
Markets Insider