Following the announcement of Republican presidential candidate Donald Trump's victory, U.S. Steel (X, Financial) saw a significant pre-market increase of over 6%. The market expects that if Trump reintroduces tariffs on imported steel similar to those imposed in 2018, U.S. Steel will benefit.
Other steel stocks also experienced gains. Nucor (NUE) rose nearly 11%, Cleveland-Cliffs (CLF) increased over 11%, Steel Dynamics (STLD) climbed nearly 9%, and Reliance Steel & Aluminum (RS) advanced close to 3%. Additionally, Alcoa (AA) went up over 2%, and Century Aluminum (CENX) increased more than 3% pre-market.
In 2018, the Trump administration imposed duties of 25% on imported steel and 10% on imported aluminum, a move criticized by the World Trade Organization as violating global trade rules. These tariffs were later removed by the Biden administration in 2021.
Notably, Trump previously stated that he would block the acquisition of U.S. Steel by Nippon Steel for nearly $15 billion if he became president. The review decision by the Committee on Foreign Investment in the United States (CFIUS) regarding this transaction has been postponed until after the U.S. presidential election.
