
The VanEck Steel ETF and State Street Materials Select Sector SPDR swung sharply last week as U.S.-Canada tariff tensions escalated
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The VanEck Steel ETF and State Street Materials Select Sector SPDR swung sharply last week as U.S.-Canada tariff tensions escalated

Tariff policy is boosting domestic steel and manufacturing stocks, with Nucor, Cleveland-Cliffs, and PACCAR positioned to benefit from reduced foreign competition and rising demand.

Trade talks between the U.S. and Canada collapsed in the 11th hour Friday, renewing fears of an all-out trade war as new tariffs went into effect over the weekend. Ford and Stellantis shares slipped Monday after President Trump announced a 50% tariff on automobiles and auto parts from Canada come January.

Trump’s Canada tariff threat hit Detroit broadly, but Stellantis has the most awkward plant problem sitting right in the middle of it.
The move walks back a previous plan to replace the facility’s coal-powered infrastructure with low-emissions technology funded by federal tax dollars, environmental groups said.

Nucor, Steel Dynamics, Cleveland-Cliffs and Century Aluminum could be winners from U.S.-Canada trade talks breaking down. Last week those stocks tumbled on the prospect of a Canada trade deal that would lower U.S. tariffs on steel and aluminum. New 50% tariffs on a $20 billion worth of Canadian goods, including liquor, electrical equipment and hockey gear, took effect on Saturday.
Investing.com -- New 50% U.S. tariffs on about $20 billion of Canadian goods took effect Saturday after last-minute trade negotiations collapsed, prompting Canadian Prime Minister Mark Carney to pledge matching retaliation, Bloomberg reported.
Federal backing lowers the cost of a major steel upgrade
The U.S. and Canada are reportedly nearing a tentative trade deal that would lower tariffs on certain Canadian steel and aluminum exports from 50% to 25%.
The steel producer’s earnings are expected to more than double in the coming months as steel prices continue to climb and supplies remain tight as a result of tariffs.
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