As the Trump administration takes over in 2025, his proposed import tariffs across the board have stoked inflation fears. Many stocks are feeling the impact of stockpiling ahead of the new tariffs, while other stocks are sinking on the prospects of rising costs, leading to softening demand and compressed margins. The basic materials sector is bracing for a potential surge in steel prices. This would mean a 60% tariff on U.S. imports of Chinese-origin steel.
This may have a minimal effect since China has a fractional market share in U.S. steel imports. However, the goal is to drive more business to the nation’s steel producers. While this seems like a boon to domestic steel makers, Trump’s “Made in America” stance could also further hurt one particular steel stock. Here is 1 steel stock to buy and 1 to sell on Trump’s tariffs.
