Donald Trump’s new tariffs just hit the market, sending some steel and aluminum stocks up while adding a new wrinkle for international producers. With a 25% tariff now set on all steel and aluminum imports, the market is watching key stocks that could benefit—or struggle—under these policies.
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These kinds of market-moving headlines create momentum, but also risk. Political news can flip sentiment in an instant, turning winners into losers overnight. If you’re trading this sector, you need a plan, discipline, and the ability to react fast.
Here’s what you need to know about Trump’s latest tariff strategy and the stocks in focus right now.
Trump’s Tariff Plan and Market Impact
Trade policy has been a cornerstone of Trump’s economic agenda, and tariffs are one of his favorite tools. This latest round of steel and aluminum tariffs mirrors the moves he made in his first term, when similar policies sent these sectors into the spotlight. Just like last time, we’re looking at trade-friendly volatility rather than investment opportunity.
Here’s the big picture on these tariffs:
- Their target is foreign competition. The goal is to make imported steel and aluminum more expensive, driving demand for U.S. production.
- They will pressure our trade partners. Canada and Mexico initially received temporary exemptions, but Trump has hinted that further economic penalties could be on the table if they don’t align with U.S. trade policies.
- Potential escalation is on the horizon. Trump has floated the idea of reciprocal tariffs, meaning the U.S. would match the trade restrictions other countries impose on American goods. That kind of tit-for-tat strategy could fuel even more market volatility.
For traders, the main takeaway is that tariffs create short-term momentum, but reversals can happen just as fast. Steel and aluminum stocks are already on the move, but whether they keep climbing depends on how this trade war plays out.
Steel and Aluminum Stocks to Watch
My top 4 steel and aluminum stocks to watch in 2025 are:
- NASDAQ: CENX — Century Aluminum – A Direct Tariff Beneficiary
- NYSE: CLF — Cleveland-Cliffs Inc. – A Steel Stock That Moves With Trade Policy
- NYSE: X — United States Steel Corp. – A Politically Charged Steel Play
- NYSE: AA — Alcoa – A Complicated Tariff Play
Check out my Bitcoin under Trump stock watchlist here!
| Stock Ticker | Company | Performance (YTD) |
| NASDAQ: CENX | Century Aluminum | + 16.37% |
| NYSE: CLF | Cleveland-Cliffs Inc. | + 23.85% |
| NYSE: X | United States Steel Corp. | + 17.94% |
| NYSE: AA | Alcoa | – 2.16% |
Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.
The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.
Let’s get to the picks…
Century Aluminum (NASDAQ: CENX) – A Direct Tariff Beneficiary
Century Aluminum has been one of the biggest winners from Trump’s aluminum tariffs. As a U.S.-based producer, it benefits when imported aluminum gets more expensive, making domestic production more attractive.
- Why it’s moving: Century Aluminum spiked as soon as the 25% aluminum tariff was confirmed, as traders bet on higher domestic demand.
- Key risks: The company still relies on global supply chains. If trade partners retaliate or Trump reverses course, those same factors that sent the stock soaring could cause a pullback.
Cleveland-Cliffs Inc. (NYSE: CLF) – A Steel Stock That Moves With Trade Policy
Cleveland-Cliffs is a major U.S. steel and iron ore producer that has long backed protectionist trade policies. The company argues that foreign steel competition undercuts American jobs and manufacturing, making it one of the biggest supporters of Trump’s tariffs.
- Why it’s moving: A 25% tariff on foreign steel gives Cleveland-Cliffs an immediate advantage, driving up demand for its domestic products.
- Key risks: This stock is highly sensitive to political headlines. If Trump softens his stance or major trading partners hit back with their own tariffs, the bullish case could weaken.
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United States Steel Corp. (NYSE: X) – A Politically Charged Steel Play
United States Steel has been at the center of tariff-related price swings for years. Now, in addition to benefiting from the latest tariffs, it’s also caught in the middle of a political battle over its potential sale to Japan’s Nippon Steel.
- Why it’s moving: Trump’s public opposition to a foreign takeover of U.S. Steel has provided volatility, while the 25% tariffs have given this domestic producer momentum.
- Key risks: This stock moves on politics as much as fundamentals. If Trump’s tariff push faces legal or political roadblocks, or if global steel demand slows, the recent gains could evaporate.
Alcoa (NYSE: AA) – A Complicated Tariff Play
Alcoa is one of the largest aluminum producers in the world, but its global footprint makes its reaction to tariffs less straightforward. While the company could benefit from stronger aluminum prices in the U.S., it also faces risks from higher costs and potential foreign retaliation.
- Why it’s moving: Initial investor reaction to the tariffs was bullish, as traders speculated that Alcoa could gain pricing power.
- Key risks: Alcoa still imports raw materials, and any supply chain disruptions could offset its tariff-related gains. If trade tensions escalate further, Alcoa could find itself caught in the crossfire.
Final Thoughts
Steel and aluminum stocks are at the center of Trump’s new tariffs, creating opportunities for traders who can navigate volatility. But this is a fast-moving market—and what goes up can just as easily come down.
Here’s what to watch for:
- Market sentiment can shift quickly. These stocks are reacting to political decisions, which can change overnight.
- Watch for international retaliation. If other countries respond with their own tariffs, it could cut into the benefits for U.S. steel and aluminum companies.
- Follow the headlines closely. Any new developments out of Washington could trigger immediate market reactions.
Traders love volatility, but it’s a double-edged sword. The ones who make money in these types of markets aren’t the ones chasing hype—they’re the ones sticking to their plans and managing their risk.
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