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 X was up 5.3 percent, AK Steel Holding Corporation AKS 8.3 percent, Nucor Corporation NUE 2 percent and Steel Dynamics, Inc. 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
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