Investors in American steel companies reacted enthusiastically to the doubling of US import tariffs on steel and aluminum, announced by President Donald Trump last night. In after-hours trading on Wall Street, shares of steel producer Cleveland-Cliffs rose by 26 percent. However, trading partners Canada and Australia immediately condemned the tariff increase.
The doubling of steel and aluminum tariffs from 25 to 50 percent intensifies Trump's trade war and came just hours after he accused China of violating an agreement with the US to roll back tariffs and trade restrictions on critical minerals.
The Canadian Chamber of Commerce quickly condemned the tariff increase as 'contrary to North American economic security.' The center-left government of Australia also criticized the move as 'unjustified and not the act of a friend.'
Investors seem to assume that the new tariffs will increase the profits of American steel companies. Not only did Cleveland-Cliffs rise sharply in after-hours trading, but Steel Dynamics and Nucor also gained more than 5 percent.
