Skip to main content

Market Overview

Height Securities: Concrete Proposal Unlikely To Emerge From Trump's Tariff Meeting With Steel, Aluminum Execs

Share:
Height Securities: Concrete Proposal Unlikely To Emerge From Trump's Tariff Meeting With Steel, Aluminum Execs

President Donald Trump will meet with steel and aluminum executives Thursday, leading some to speculate an import tariff announcement is imminent, according to Reuters.

But Height Securities considers a final proposal on rates or quotas unlikely to be released.

“We expect that ongoing opposition from foreign partners, Congressional leaders, industry representatives from manufacturing industries and the Defense Department will push any final proposal further into March,” Height analysts said in a Thursday note. “ ... If we do receive any announcement today, it will likely be short on detail and may ignore aluminum altogether, as we understand the DoD has significant concerns with imposing any restrictions on aluminum imports.”

Headlines from the meeting are expected to bolster sentiment around the steel industry — but not necessarily around the U.S. economy.

RSM Chief Economist Joe Brusuelas said tariff talk should not be considered positive.

Height asserted that no meeting outcomes or policy perspectives are certain, considering the president’s mercurial mindset amid the Mueller investigation, staff turnover and “infighting among his closest advisers.”

At the time of publication, U.S. steel stocks were trading higher off the open. United States Steel Corporation (NYSE: X) was up 5.3 percent, AK Steel Holding Corporation (NYSE: AKS) 8.3 percent, Nucor Corporation (NYSE: NUE) 2 percent and Steel Dynamics, Inc. (NASDAQ: STLD) 1.7 percent.

Editor's note: Around 12:30 p.m. ET, Trump announced a 25 percent tariff for steel and 10 percent tariff for aluminum.

Related Links:

Analysts Break Down The Sec. 232 Steel Investigation

US Steel, Aluminum Stocks Rally After Commerce Dept. Calls For Tariffs

Analyst: Steel Investors Need Action From Trump, Not Words

 

Related Articles (AKS + NUE)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Commodities Politics Top Stories Markets Analyst Ratings Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com