Trump Administration Modifies Steel and Aluminum Import Duties
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
0mins
Trump administration is set to modify duties on imported steel and alumium finished products to help simplify compliance with a 25% tariff, the Wall Street Journal's Gavin Bade and Bob Tita report, citing people with knowledge of the plans. The 25% tariff would apply to the entire value of a finished product containing steel and aluminum and replace the current 50% duty, which only applies to the value of steel or aluminum used in a product, which could effectively raise costs for many imports, the report stated. Publicly traded companies in the Steel space include ArcelorMittal (MT), Cleveland-Cliffs (CLF), Nucor (NUE), Steel Dynamics (STLD) and U.S. Steel (X). Public companies in Aluminum include Alcoa (AA), Century Aluminum (CENX), and Kaiser Aluminum (KALU).
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Analyst Views on CLF
Wall Street analysts forecast CLF stock price to rise
9 Analyst Rating
2 Buy
5 Hold
2 Sell
Hold
Current: 8.450
Low
5.75
Averages
12.78
High
17.00
Current: 8.450
Low
5.75
Averages
12.78
High
17.00
About CLF
Cleveland-Cliffs Inc. is a steel producer with a focus on value-added sheet products, particularly for the automotive industry in North America. The Company is vertically integrated from the mining of iron ore, production of pellets and direct reduced iron, and processing of ferrous scrap through primary steelmaking and downstream finishing, stamping, tooling, and tubing. Its offering includes advanced high-strength steel, hot-dipped galvanized, aluminized, galvalume, electrogalvanized, galvanneal, hot-rolled coil (HRC), cold-rolled coil, plate, grain oriented electrical steel (GOES), non-oriented electrical steel (NOES), stainless steels, tool and die, stamped components, rail, slab and cast ingot. Its Other Businesses primarily include the Tubular and Tooling and Stamping segments that provide customer solutions with carbon and stainless steel tubing products, advanced-engineered solutions, tool design and build, hot- and cold-stamped steel components and complex assemblies.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Trump Administration Reshapes Steel and Aluminum Tariff Policy
- Tariff Adjustment Plan: The Trump administration is preparing to announce changes to the tariff regime for finished steel and aluminum products this week, aiming to simplify compliance processes and potentially impacting the overall cost structure of the steel and aluminum industry.
- New Tariff Rates: The tariff on finished steel and aluminum products will be reduced from 50% to 25%, applying to the entire value of the finished product rather than just the steel or aluminum content, which may increase tariff costs for certain products.
- Scope of Impact: While many goods will see a lower tariff rate, the new policy's full-value taxation could lead to increased import costs for some products, affecting market prices and consumer spending.
- Stock Volatility: Stocks related to steel and aluminum, such as Nucor, Cleveland-Cliffs, and Alcoa, may experience fluctuations due to this policy change, prompting investors to monitor these companies' market performance and strategies in response to the new tariff regulations.
See More
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- Investment Opportunity: UBS upgraded Nucor's rating from neutral to buy and raised its price target from $184 to $190, indicating a 15% upside potential, suggesting that investors should consider buying on the recent sell-off.
- Market Isolation: Analyst Andrew Jones noted that while the Iran conflict has caused supply chain bottlenecks affecting chemicals, steel, and aluminum, U.S. steel producers remain relatively insulated, with Nucor's stock down 6% over the past month but poised for recovery.
- Policy Support: Increased federal contracts for steel manufacturers and a decline in U.S. steel imports could bolster Nucor's stock, particularly in a federally supported high-price/high-volume environment, indicating a positive growth outlook for the company.
- Industry Outlook: With President Trump raising steel tariffs from 25% to 50%, increasing overseas sourcing costs, UBS's view aligns with Wall Street consensus, as two-thirds of the 18 analysts covering Nucor have a buy or strong buy rating, reflecting confidence in its future performance.
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Cleveland-Cliffs Appoints New Lead Independent Director
- Board Leadership Change: Cleveland-Cliffs Inc. has appointed Ralph “Mike” Michael III as the new Lead Independent Director, succeeding Douglas Taylor who resigned due to a change in professional circumstances, ensuring stability and continuity in the board's leadership.
- Enhanced Strategic Perspective: New director Mike Michael previously served as Chairman of AK Steel, successfully guiding its acquisition by Cleveland-Cliffs, and his extensive experience in the steel industry and capital markets will provide a more strategic perspective for the company and its shareholders.
- New Compensation Committee Chair: Edilson Camara has been appointed as the Chairman of the Compensation and Organization Committee, replacing the resigned Taylor; Camara is well-respected in the global executive search and leadership advisory field, enhancing the board's overall governance capabilities.
- Company Overview: Cleveland-Cliffs is a leading North American steel producer focused on value-added sheet products for the automotive industry, employing approximately 30,000 people and demonstrating strong market competitiveness and vertical integration capabilities.
See More
Cleveland-Cliffs Appoints New Lead Independent Director
- Board Leadership Change: Cleveland-Cliffs Inc. has appointed Ralph 'Mike' Michael III as the new Lead Independent Director, succeeding Douglas Taylor who resigned due to a change in professional circumstances, ensuring continued stability and governance efficiency on the Board.
- Enhanced Strategic Perspective: Michael's extensive experience in the steel industry and deep understanding of capital markets will provide a strategic perspective that further drives Cleveland-Cliffs' long-term growth and shareholder value.
- New Compensation Committee Chair: The company also named Edilson Camara as Chairman of the Compensation and Organization Committee, replacing Taylor; Camara is well-respected in the global executive search field, and his leadership will enhance the overall effectiveness of the Board.
- Company Background: Cleveland-Cliffs is a leading North American steel producer focused on value-added sheet products, particularly for the automotive industry, employing approximately 30,000 people, showcasing strong market competitiveness and industry integration capabilities.
See More
Andrew Carnegie's Legacy and Impact
- Pioneer of Philanthropy: Since its founding in 1911, the Carnegie Corporation has awarded over $16.5 billion in grants, advancing education, democracy, and peace, reflecting Andrew Carnegie's profound understanding and practice of social responsibility.
- Rise of a Steel Titan: Carnegie's steel company, established in the 1890s, produced more steel than all of Britain, showcasing his exceptional capabilities in innovation and cost control, which propelled America's rapid industrial rise.
- Building Public Libraries: Carnegie was committed to providing free public libraries for everyone, funding 2,500 libraries during his lifetime, demonstrating his steadfast belief in educational equity and aiming to provide learning opportunities for all aspiring individuals.
- Long-term Philanthropic Investment: The Carnegie Corporation emphasizes long-term investments, supporting academic research and cultural projects, aiming to alleviate social tensions and promote the realization of democratic values through education and cultural development.
See More
Trump Administration Reshapes Steel and Aluminum Tariff Policy
- Tariff Adjustment Plan: The Trump administration is preparing to announce changes to the tariff regime for finished steel and aluminum products this week, aiming to simplify compliance processes and potentially impacting the overall cost structure of the steel and aluminum industry.
- New Tariff Rates: The tariff on finished steel and aluminum products will be reduced from 50% to 25%, applying to the entire value of the finished product rather than just the steel or aluminum content, which may increase tariff costs for certain products.
- Scope of Impact: While many goods will see a lower tariff rate, the new policy's full-value taxation could lead to increased import costs for some products, affecting market prices and consumer spending.
- Stock Volatility: Stocks related to steel and aluminum, such as Nucor, Cleveland-Cliffs, and Alcoa, may experience fluctuations due to this policy change, prompting investors to monitor these companies' market performance and strategies in response to the new tariff regulations.
See More
Market Outlook Dims as Analysts Downgrade Key Stocks
- Oil Prices and Market Pressure: Rising oil prices and bond yields, coupled with Washington's negotiations with Iran, are creating significant challenges for the stock market, as futures indicate a lower open, making it difficult for investors to commit substantial capital in this environment.
- Qualcomm Downgrade: Bernstein downgraded Qualcomm from buy to hold, citing concerns that soaring memory prices are pressuring the smartphone market, indicating a loss of confidence in Qualcomm as Wall Street shifts preference towards Arm Holdings.
- Adobe Faces Competitive Pressure: William Blair downgraded Adobe from buy to hold, highlighting intense AI competition in its core Creative Cloud business, suggesting that Adobe's high valuation may be unsustainable amid declining earnings power.
- Tyson Foods Receives Buy Rating: Mizuho initiated coverage of Tyson Foods with a buy rating, noting that increased consumer demand for nutrient-rich diets will drive growth, while the company's heavy reinvestment over the past five years is expected to enhance profitability.
See More
Nucor Upgraded Amid Iran Conflict, UBS Sees Buying Opportunity
- Investment Opportunity: UBS upgraded Nucor's rating from neutral to buy and raised its price target from $184 to $190, indicating a 15% upside potential, suggesting that investors should consider buying on the recent sell-off.
- Market Isolation: Analyst Andrew Jones noted that while the Iran conflict has caused supply chain bottlenecks affecting chemicals, steel, and aluminum, U.S. steel producers remain relatively insulated, with Nucor's stock down 6% over the past month but poised for recovery.
- Policy Support: Increased federal contracts for steel manufacturers and a decline in U.S. steel imports could bolster Nucor's stock, particularly in a federally supported high-price/high-volume environment, indicating a positive growth outlook for the company.
- Industry Outlook: With President Trump raising steel tariffs from 25% to 50%, increasing overseas sourcing costs, UBS's view aligns with Wall Street consensus, as two-thirds of the 18 analysts covering Nucor have a buy or strong buy rating, reflecting confidence in its future performance.
See More
Cleveland-Cliffs Appoints New Lead Independent Director
- Board Leadership Change: Cleveland-Cliffs Inc. has appointed Ralph “Mike” Michael III as the new Lead Independent Director, succeeding Douglas Taylor who resigned due to a change in professional circumstances, ensuring stability and continuity in the board's leadership.
- Enhanced Strategic Perspective: New director Mike Michael previously served as Chairman of AK Steel, successfully guiding its acquisition by Cleveland-Cliffs, and his extensive experience in the steel industry and capital markets will provide a more strategic perspective for the company and its shareholders.
- New Compensation Committee Chair: Edilson Camara has been appointed as the Chairman of the Compensation and Organization Committee, replacing the resigned Taylor; Camara is well-respected in the global executive search and leadership advisory field, enhancing the board's overall governance capabilities.
- Company Overview: Cleveland-Cliffs is a leading North American steel producer focused on value-added sheet products for the automotive industry, employing approximately 30,000 people and demonstrating strong market competitiveness and vertical integration capabilities.
See More
Cleveland-Cliffs Appoints New Lead Independent Director
- Board Leadership Change: Cleveland-Cliffs Inc. has appointed Ralph 'Mike' Michael III as the new Lead Independent Director, succeeding Douglas Taylor who resigned due to a change in professional circumstances, ensuring continued stability and governance efficiency on the Board.
- Enhanced Strategic Perspective: Michael's extensive experience in the steel industry and deep understanding of capital markets will provide a strategic perspective that further drives Cleveland-Cliffs' long-term growth and shareholder value.
- New Compensation Committee Chair: The company also named Edilson Camara as Chairman of the Compensation and Organization Committee, replacing Taylor; Camara is well-respected in the global executive search field, and his leadership will enhance the overall effectiveness of the Board.
- Company Background: Cleveland-Cliffs is a leading North American steel producer focused on value-added sheet products, particularly for the automotive industry, employing approximately 30,000 people, showcasing strong market competitiveness and industry integration capabilities.
See More
Andrew Carnegie's Legacy and Impact
- Pioneer of Philanthropy: Since its founding in 1911, the Carnegie Corporation has awarded over $16.5 billion in grants, advancing education, democracy, and peace, reflecting Andrew Carnegie's profound understanding and practice of social responsibility.
- Rise of a Steel Titan: Carnegie's steel company, established in the 1890s, produced more steel than all of Britain, showcasing his exceptional capabilities in innovation and cost control, which propelled America's rapid industrial rise.
- Building Public Libraries: Carnegie was committed to providing free public libraries for everyone, funding 2,500 libraries during his lifetime, demonstrating his steadfast belief in educational equity and aiming to provide learning opportunities for all aspiring individuals.
- Long-term Philanthropic Investment: The Carnegie Corporation emphasizes long-term investments, supporting academic research and cultural projects, aiming to alleviate social tensions and promote the realization of democratic values through education and cultural development.
See More
