- Pres. Trump is still expected to impose steel import tariffs on national security grounds despite last month's delay of the release of the Section 232 review of the U.S. steel industry, industry players and trade experts tell Reuters.
- U.S. steel stocks have dropped ~10% since Trump delayed the probe, partly reflecting fears that his promises to protect the industry may not materialize, but industry analysts say the falls might be overdone and import relief may still happen.
- "The most likely outcome is tariff rate quotas where the level of tariff changes dependent on the volume of imports. This structure serves as something of an upside cap on steel pricing so they do not get out of control," predicts Jefferies analyst Seth Rosenfeld.
- "The healthcare bill went down - a big loss... He sees tough action on trade as a political winner. I think he'll return to the matter before the end of the year," says Gary Hufbauer at the Peterson Institute for International Economics.
- Relevant tickers include X, AKS, NUE, CLF, WOR, RS, MT, STLD, CMC, SLX.
- Now read: Iron Ore And The Baltic Dry Index - Barometers For The Global Economy
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