Investing.com -- Shares of U.S.-based steel and aluminum companies climbed in today’s trading session following President Donald Trump’s announcement of an additional 25% tariff on imports from Canada. The move, which escalates the tariff to a total of 50%, is set to take effect tomorrow, March 12th.
U.S. Steel saw an increase of 2.7%, Nucor (NYSE:NUE) rose by 1.5%, and Steel Dynamics (NASDAQ:STLD) was up by 1.4%. In the aluminum sector, Alcoa (NYSE:AA) shares advanced 1.3%, while Century Aluminum (NASDAQ:CENX) jumped 7%. The tariff hike comes in response to Ontario’s decision to impose a 25% tariff on electricity exports to the United States.
In a statement on his Truth social media platform on Tuesday, President Trump justified the aggressive trade measure by citing Canada as "one of the highest tariffing nations anywhere in the world." He emphasized the need for the U.S. to protect its steel and aluminum industries from foreign competition.
The announcement has had an immediate impact on the market, with investors anticipating that the tariffs could benefit domestic producers by reducing competition from Canadian imports. This protectionist stance aligns with Trump’s previous trade policies, which have often favored tariffs as a means to bolster American industry.
The market’s response indicates a belief that the increased tariffs could lead to higher prices and potentially improved profit margins for U.S. steel and aluminum companies. As the tariffs are set to be implemented tomorrow, the full extent of their impact on trade dynamics and the profitability of domestic producers will be closely monitored by the market.
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