Steel Prices Set to Skyrocket as 50% Tariffs Hit—Wall Street Already Pricing in the Pain

Brace for impact—analysts predict steel costs will surge after new tariffs slam the market. The 50% duty sends shockwaves through construction and manufacturing sectors, with no easy fixes in sight.

Who wins? Probably the same hedge funds that shorted industrial stocks last quarter. Meanwhile, Main Street gets another inflation gut-punch while Washington debates ’strategic protectionism.’

Funny how tariffs never seem to protect consumers’ wallets—just corporate balance sheets.

Analysts warn that steel prices may increase due to the tariffs

Still, analysts warn that higher levies could push up prices for steel, a critical material in construction and manufacturing, two industries Trump has said he wants to strengthen. Since March, the price of domestically produced steel has climbed, as American mills no longer face as much competition from abroad.

A 2023 report by the International Trade Commission looked back to when Trump applied steel tariffs in 2018, finding that U.S. steel output did rise, but costs climbed for cars, tools, and machines. Those higher expenses cut production in affected industries by more than $3 billion in 2021, the agency said.

Trump is using a law known as Section 232, which lets the president impose tariffs on imports deemed a threat to national security. Last year, the U.S. bought $31.3 billion worth of iron and steel. Canada topped the list at $7.6 billion, according to Commerce Department figures.

Later in his remarks, Trump turned to another issue: the sale of U.S. Steel to Japan’s Nippon Steel. During his 2024 campaign, he had opposed the deal, and President Joe Biden had blocked it, citing security concerns. But Trump said he came to believe Nippon could save the company and keep jobs in America.

“U.S. Steel was being sold into foreign hands with no protections for our great steel workers,” he said. “And I said there’s no way we’re gonna let that happen. I was watching over you.”

But he added that Nippon and U.S. Steel leaders kept improving the terms. “They kept asking me and I kept rejecting them: No way, no way, no way,” he said. “Every time they came in, the deal got better and better and better for the workers.” A key change was a so-called golden share that gives the U.S. government a say in company decisions.

“I’m going to be in Washington; I’m gonna be watching over it,” Trump promised.

Wrapping up, Trump said that with higher tariffs and the Nippon agreement, U.S. Steel workers had much to celebrate. He invited several employees onstage, and they spoke about the challenges the industry had faced. They thanked him for his actions.

“This is going to be a very big day,” Trump told the workers. “This is going to be one of the biggest days in your life.”

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