President-elect Donald Trump is set to be inaugurated on Jan. 20, just a few days away. U.S. markets have whipsawed since the November election. Steel stocks, which were at the forefront of the “Trump trade” during his first presidency, rallied sharply after he was elected for the second time. However, steel stocks also come off their November highs presenting, a buying opportunity.
Trump’s tariff talk is welcomed by U.S. steel executives, who often blame cheap imports for their woes. In his first term, Trump levied a 25% tariff on imports under the pretext that they were a risk to “U.S. national security.” Over the course of his four-year term, Trump began to scale back those tariffs. His successor President Joe Biden relaxed the tariffs even further. The U.S. steel industry is hopeful that Trump will again try to bail out domestic steel companies.
