US Steel is tumbling after Trump does a 180 on trade (X)




 

Manuel Balce Ceneta/AP


President Donald Trump just did a 180 on trade with China, and steel stocks are under pressure.

US Steel is down 4.77% Monday after Trump touted his revised position on trade with China, announcing the US will put its tariffs on hold.

In March, Trump announced the US would place a 25% tariff on imported steel from China, and 10% tariff on imported aluminum.

"China has agreed to buy massive amounts of ADDITIONAL Farm/Agricultural Products - would be one of the best things to happen to our farmers in many years!"Trump tweeted.

The affirmative but vague repositioning on trade talks includes the US putting tariffs of $150 billion worth of Chinese imports on hold. China is promising to increase its imports of US agriculture and energy products. It previously said it would retaliate by putting tariffs on US agriculture products like soybeans.

It is not yet clear whether the White House intends to put steel and aluminum tariffs on hold, but steel stocks are getting hit on the assumption those tariffs may be postponed or canceled.

And US Steel Corporation shares seem to move directly in line with Trump's tariff announcements. US Steel spiked in early March when Trump announced tariffs on China, and one analyst told Business Insider the tariffs could make US Steel's operating income "laughably high."

The price of steel in the US has increased roughly 5%, since Trump's tariff announcement in early March. That's a direct result from the initial tariffs, according to UBS analyst Andreas Bokkenheuser. "A temporary drop in steel imports triggered by Section 232 has supported prices," he wrote in a note to clients.

"Potential trade deals with China will likely encourage steel imports once more - and, in turn, accelerate a US steel price correction, in our view," he said. "We advise caution on the US steel sector."

Nucor, another steel manufacturer in the US is also off slightly, just over 1%.

US Steel Corporation is down 5.84% on the year.

Markets Insider

NOW WATCH: Jeff Bezos reveals what it's like to build an empire and become the richest man in the world - and why he's willing to spend $1 billion a year to fund the most important mission of his life

See Also:

COMMENTS

More Related News

Giuliani backtracks on comments Trump sought Moscow deal throughout 2016
Giuliani backtracks on comments Trump sought Moscow deal throughout 2016

Giuliani told NBC's "Meet the Press" on Sunday that Trump may have continued to pursue the project and had discussions about it with his former personal attorney, Michael Cohen, until as late as October or November 2016, when Trump was closing in on his election victory over Democrat Hillary

Rudy Giuliani says he is '100 percent certain' President Trump did not tell Cohen to lie to Congress
Rudy Giuliani says he is '100 percent certain' President Trump did not tell Cohen to lie to Congress

The president's attorney also said the Trump may have discussed a Trump Tower Moscow project with Cohen up until the 2016 election.

Trump Tweaks Border Stance in Bid to Shift Shutdown Blame
Trump Tweaks Border Stance in Bid to Shift Shutdown Blame

Democratic House Speaker Nancy Pelosi rejected the proposal on Saturday, hours before Trump outlined it in a White House speech to the nation. Trump said he would extend protections for three years for so-called Dreamers -- young people bought to the country illegally as children --and make other concessions in exchange for his demanded $5.7 billion toward a border wall. White House chief of staff Mick Mulvaney mused to reporters that he is "very curious" to see how Democrats explain a "no" vote on Trump's plan under those circumstances.

Multiple women eyeing 2020 hands Dems
Multiple women eyeing 2020 hands Dems 'wonderful challenge'

Advocates for gender equality are reckoning with what one called a "wonderful challenge" - four or more women running for president in 2020. Looming over it all is persistent gender bias and the question of whether Americans are ready to elect a female president. "We do realize there

Could 1st tangible signs of shutdown progress be emerging?
Could 1st tangible signs of shutdown progress be emerging?

The first tangible signs of movement may be emerging in the impasse that has shut down the government for weeks: President Donald Trump is promising a "major announcement" about the closure and the U.S.-Mexico border and Democrats are pledging more money for border security. It was unclear

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.