Trump Tariff Stocks: Steel and Aluminum Stocks to Watch Now

President Donald Trump’s new wave of tariffs is shaking up the markets, sending steel and aluminum stocks surging while introducing fresh uncertainty into global trade. With a 25% tariff now set to hit all steel and aluminum imports, traders are closely watching the companies that stand to benefit—or struggle—under these policies.

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Tariff headlines drive market sentiment, and these stocks have already seen some volatility. But traders should be careful—political news can cause rapid reversals. Here’s what you need to know.

Trump’s Tariff Strategy and Market Impact

Donald Trump has long positioned himself as a champion of protectionist trade policies, advocating for tariffs to boost domestic manufacturing. His America First agenda includes using trade barriers to make U.S.-made goods more competitive. The latest round of tariffs follows a pattern seen during his first term, when steel and aluminum stocks surged on similar policy moves.

Trump’s approach to tariffs includes:

• Targeting foreign competition. By imposing steep tariffs on imports,Trump hopes to incentivize domestic production and reduce reliance on foreign suppliers.
• Pressuring trade partners. Canada and Mexico initially received a one-month reprieve, but Trump has warned that their actions to curb drug smuggling were “not good enough,” suggesting more economic penalties could follow.
• Unpredictable escalation. While a 25% tariff is already set for steel and aluminum, Trump has also floated the idea of broader reciprocal tariffs, matching those imposed by other countries on U.S. goods. This tit-for-tat approach creates additional market volatility.

For traders, the key takeaway is that tariffs drive short-term momentum in certain sectors. But this can cut both ways—if Trump delays, modifies, or reverses these tariffs, the same stocks that rallied could quickly tumble.

Here are four steel and aluminum stocks that traders should be watching closely.

Century Aluminum (NASDAQ: CENX) – The U.S.-Based Aluminum Stock

Century Aluminum is a direct beneficiary of Trump’s aluminum tariffs. As a U.S.-based aluminum producer, the company stands to gain if imports become more expensive and domestic production gets a competitive edge.

• Why it’s moving: Century Aluminum surged after Trump confirmed his 25% aluminum tariff, with traders betting on higher domestic demand.
• Key risks: The company still relies on global supply chains, and any retaliation from trade partners could impact costs. Additionally, any shift in tariff policy could reverse recent gains.

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Cleveland-Cliffs Inc. (NYSE: CLF) – A Steel Stock With Protectionist Politics

Cleveland-Cliffs, a major steel and iron ore producer, has seen significant gains on Trump’s tariff announcement. The company has long supported protectionist policies, arguing that unfair foreign competition hurts American steelmakers.

• Why it’s moving: The 25% tariff directly benefits U.S. steelmakers like Cleveland-Cliffs, which produces domestically and supplies American manufacturers.
• Key risks: The stock is highly sensitive to political developments—if Trump softens his stance or trading partners retaliate, the bullish case could weaken.

United States Steel Corp. (NYSE: X) – The Steel Giant With a Japanese Takeover Bid

Few companies are as closely tied to U.S. trade policy as United States Steel Corp. The stock has a history of spiking on protectionist policies and crashing when trade wars ease. Trump’s latest tariffs have once again made it a key stock to watch.

• Why it’s moving: Trump’s firm stance on keeping U.S. Steel under American ownership—blocking a potential sale to Japan’s Nippon Steel—has added fuel to the stock’s rally. The new tariffs only reinforce its role as a domestic steel play.
• Key risks: U.S. Steel remains a politically sensitive stock. If Trump’s tariff push faces resistance in Congress, or if global demand weakens, the gains could evaporate.

Alcoa (NYSE: AA) – The International Aluminum Stock

Alcoa is one of the world’s largest aluminum producers, but it has a more complex relationship with tariffs. While the company operates in the U.S., it also has a significant international footprint. That means it could benefit from reduced import competition—but also face higher costs if trade wars escalate.

• Why it’s moving: The 25% aluminum tariff initially boosted Alcoa, as investors speculated on stronger pricing power.
• Key risks: Alcoa relies on imported raw materials, and higher input costs could offset tariff-driven gains. If trading partners retaliate, Alcoa could get caught in the crossfire.

Final Thoughts

Steel and aluminum stocks are at the center of Trump’s tariff strategy, making them some of the most volatile plays in the market right now. While traders have already seen big price swings, the story isn’t over—new policy shifts could fuel more explosive moves in either direction.

Key takeaways for traders:

• Stay adaptable. These stocks are moving fast, but reversals can happen just as quickly.
• Watch for retaliation. If other countries hit back with their own tariffs, it could dampen the bullish case for U.S. steel and aluminum.
• Follow the news closely. Trump’s trade policies are fluid—any new developments could shift market sentiment overnight.

This is a market tailor-made for traders who are prepared. Traders thrive on volatility, but it can be a double-edged sword. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this unpredictable market.

If you want to know what I’m looking for—check out my free webinar here!