U.S. Steel and Aluminum Stocks Rose with Trump's Canada Tariff

Investing.com -- Shares of U.S.-based steel and aluminum companies rose in today's trading session following President Donald Trump's announcement of a 25% additional tariff on imports from Canada. The total tariff increase, which has reached 50%, will take effect tomorrow, March 12.

U.S. Steel rose by 2.7%, Nucor by 1.5%, and Steel Dynamics by 1.4%. In the aluminum sector, Alcoa shares increased by 1.3%, while Century Aluminum jumped 7%. The tariff hike came as a response to Ontario's decision to impose a 25% tariff on electricity exports to the U.S.

In a statement on the Truth social media platform on Tuesday, President Trump defended the aggressive trade measure by describing Canada as "one of the highest tariff-applying countries anywhere in the world." Trump emphasized the need to protect U.S. steel and aluminum industries from foreign competition.

The announcement had an immediate impact on the market, as investors anticipated that the tariffs could benefit domestic producers by reducing competition from imports from Canada. This protectionist stance aligns with Trump's previous trade policies, which often favored tariffs to strengthen American industry.

The market's reaction reflects a belief that increased tariffs could lead to higher prices and potentially improved profit margins for U.S. steel and aluminum companies. As the tariffs will be implemented tomorrow, the market will closely monitor their full impact on trade dynamics and the profitability of domestic producers.

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