US steel stocks soar as 50% import duty raises inflation fears and rattles global supply chains
President Donald Trump’s surprise move to double tariffs on steel imports—from 25% to 50%—has triggered global shockwaves, fuelling a surge in US steel prices while intensifying pressure on struggling producers and buyers across Europe and Asia.
The tariffs, announced Friday at a rally in Pennsylvania and due to take effect Wednesday, are already reshaping trade flows. US steelmakers such as Cleveland-Cliffs, Steel Dynamics and Nucor jumped sharply on Monday—by 22%, 13%, and 12% respectively—on expectations that reduced import competition will enable further price increases. The VanEck Steel ETF (SLX) gained more than 3%.
“This was an absolute surprise,” said Josh Spoores, head of steel Americas analysis at CRU. “Already steel prices in the US are higher than anywhere else… all this does is raise prices there.”
The White House says the move aims to “further secure the steel industry in the United States” and ties in with a newly announced US$14bn investment agreement between US Steel and Japan’s Nippon Steel. Trump has promised no job losses and has referred to the deal as a “partnership” that will create 70,000 jobs, despite previously criticising foreign ownership of US steel assets.
