The U.S. and Canada are reportedly nearing a tentative trade deal that would lower tariffs on certain Canadian steel and aluminum exports from 50% to 25%.
- Nucor, Steel Dynamics and Cleveland-Cliffs fell sharply, ending Wednesday down nearly 6%, almost 8% and 6%, respectively, while Century Aluminum dropped 4.5%.
- A tentative U.S.-Canada trade deal could reportedly cut tariffs on certain Canadian steel and aluminum exports to 25% from 50%.
- Trump has paused planned 50% tariffs on Canadian goods for three days as the two countries continue negotiations ahead of a Friday deadline.
Shares of U.S. steel and aluminum companies slid on Wednesday after a report stated that the U.S. could halve tariffs on Canadian steel and aluminum.
Nucor (NUE) ended Wednesday’s session nearly 6% lower, while Steel Dynamics (STLD) closed almost 8% down. Similarly, Century Aluminum (CENX) ended 4.5% down, while Cleveland-Cliffs (CLF) finished the session 6% lower.
US And Canada Discuss Lower Metal Tariffs
The tentative trade deal between the U.S. and Canada would lower tariffs on certain Canadian steel and aluminum exports to 25%, Bloomberg reported, citing people familiar with the matter. The details are yet to be finalized and not expected to apply across the board.
Talks between U.S. and Canadian trade advisers continued on Wednesday, less than 24 hours after U.S. President Donald Trump paused planned 50% levies on billions of dollars of Canadian goods to allow more time to negotiate. The planned changes to the metals tariffs could help unlock a lasting deal to avert the broader duties before a Friday deadline, according to the Bloomberg report.
Trump has, in the past, demanded changes to trade agreements or spiked them entirely at the last minute.
The move under discussion would generally halve U.S. tariffs on imports of the two metals, which currently face a 50% rate. The countries are also discussing exclusions and other measures that would change the scope of the levies, some of the people said.
The full terms of the broader deal under discussion remained unclear as of Wednesday afternoon.
Trump Signals Concessions In Canada Trade Talks
Trump announced late on Tuesday that he would pause implementation of the tariffs on Canadian goods for three days after the two sides signaled progress toward an agreement on tariffs. The two close allies, which did around $900-billion in trade in goods and services last year, have seen their relationship come under deep strain as Trump has ratcheted up trade pressure on Canada during his second term.
Last year, Trump imposed tariffs on imported steel and aluminum under Section 232 of the Trade Expansion Act, erecting a tariff wall around the U.S. economy. The duties irked many close U.S. trading partners, and several negotiated deals with the administration capped sectoral tariffs in exchange for trade concessions.
NUE, STLD, CENX, CLF Stocks: Stocktwits Retail Sentiment
On Stocktwits, retail sentiment was ‘bearish’ for NUE, STLD and CLF, while it was ‘bullish’ for CENX. Message volume was ‘normal’ for NUE, ‘high’ for STLD, ‘low’ for CENX and ‘extremely low’ for CLF.
While NUE stock has gained nearly 50% year-to-date, STLD shares have risen around 34% in the same period. Similarly, CENX stock has gained around 11%, while CLF shares have lost nearly 18% year-to-date.
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