Steel and aluminum stocks surged Monday after President Donald Trump said he will impose 25% duties on all imports of the metals into the U.S.
Cleveland-Cliffs surged more than 14%, Nucor jumped over 7%, Alcoa was trading more than 4% higher and U.S. Steel rose about 3%.
“Any steel coming into the United States is going to have a 25% tariff,” Trump told reporters on Air Force One on Sunday. The president said he will also slap 25% tariffs on aluminum imports.
The U.S. relies on imports for more than 80% of its aluminum needs, according to a note from JPMorgan. Canada supplies about 70% of raw aluminum to the U.S., according to the investment bank.
The aluminum tariff would add nearly 30 cents per pound to prices, not including transportation and other costs, according to JPMorgan. The bank expects domestic production of aluminum to increase as a result of the tariffs.
“Although existing stockpiles may provide a short-term buffer, the medium-term outlook suggests a modestly bearish impact on aluminum prices, due to potential declines in U.S. demand and a possible increase in domestic supply,” JPMorgan analysts led by Dominic O’Kane told clients.