Latest news with #VanEckSteelETF
CNBC
4 days ago
- Business
- CNBC
Steel stocks surge after Trump doubles steel tariffs, Cleveland Cliffs jumps 25%
Major steel stocks jumped Monday following President Donald Trump hiked tariffs tied to the metal. Shares of mining company Cleveland-Cliffs popped roughly 25% in premarket trading following the announcement, while Steel Dynamics and Nucor each jumped more than 10%. The VanEck Steel ETF (SLX) added 1.9%. Trump said Friday at a Pennsylvania rally he would to double tariffs on steel imports to 50% from 25%, a move that inflamed trade tensions again and drew criticism from global partners. "We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% — the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," Trump said. To be sure, Europe responded to the higher tariffs by saying on Saturday that Trump's plan "undermines ongoing efforts to reach a negotiated solution" and that the "the (European Union) is prepared to impose countermeasures." Trump on Friday also hailed what he called a "blockbuster agreement" between U.S. Steel and Japanese steel giant Nippon Steel. He promised during the rally that U.S. Steel would be "controlled by the USA" and that no layoffs would occur. But Trump has refrained from calling the deal a merger, previously saying the "partnership" it will create at least 70,000 jobs to the U.S. economy.
Yahoo
13-03-2025
- Business
- Yahoo
New Tariff Threat Boosts Steel, Aluminum ETFs
President Trump threatened increased tariffs of steel and aluminum imports from Canada, boosting exchange-traded funds with large allocations to American steel and aluminum manufacturers. In a statement posted to social media Tuesday morning, the president wrote: "Based on Ontario, Canada, placing a 25% Tariff on 'Electricity' coming into the U.S., I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA..." The VanEck Steel ETF (SLX), a pure steel ETF, initially pared gains, slipping into the red during intraday trading before marching upward. By Tuesday's close, SLX had jumped over 1.3%. The SPDR S&P Metals & Mining ETF (XME) soared, rising over 3% as it was boosted by jumps in American steel and aluminum stocks. United States Steel Corp. (X) rose by over 5%. The stock is in the top-10 holdings for both funds. Despite the jumps, the move wasn't widely celebrated across the market as Trump threatened to further extend his tariffs. In his note, Trump added: "If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!" The Industrial Select Sector SPDR Fund (XLI) spent Tuesday on a rollercoaster ride in the red, dropping as much as 1.7%. Source: The iShares U.S. Manufacturing ETF (MADE) and the Vanguard Industrials ETF (VIS) dropped by 0.8% and 1.2%, respectively, at the close, weighed down by manufacturing companies whose production costs will rise from tariffs levied on Canadian imports of steel and aluminum. Broad market funds also took a leg lower. The SPDR S&P 500 ETF Trust (SPY) sank by nearly 1.5% before paring losses and jumping briefly into the green. The SPDR Dow Jones Industrial Average ETF Trust (DIA) also tried to claw back some gains but stayed in the red into the market close. Source: Trump's tariffs have caused markets to whipsaw in the past weeks, reversing gains made by broad market ETFs in 2024. The Vanguard S&P 500 ETF (VOO) has dropped over 9% since mid-February as the trade war has escalated. Currently, the S&P 500 is flirting with correction territory, characterized by a 10% drop or more from a recent | © Copyright 2025 All rights reserved Sign in to access your portfolio
Yahoo
12-02-2025
- Business
- Yahoo
SLX Shines as US Steel Stocks Rise on New Tariffs
Steel and aluminum stocks, along with the VanEck Steel ETF (SLX), rose following the announcement of new tariffs on imported metals. This protectionist measure is expected to reduce competition for domestic producers. Major players in the steel industry, like Charlotte, North Carolina-based Nucor Corp. (NUE), and Pittsburgh, Pennsylvania-headquartered United States Steel Corp (X), both top holdings in the SLX ETF, climbed on Monday. The tariffs are anticipated to boost domestic steel and aluminum prices, increasing profitability for US producers. Reduced competition may lead to higher market share for domestic companies, driving revenue growth. The long-term impact of these tariffs on the broader economy remains uncertain, as these tariffs carry potential risks. Retaliatory tariffs from other countries could harm US exports and negatively impact the broader economy. Additionally, increased production costs for industries reliant on steel and aluminum could fuel inflationary pressures. US steel and aluminum manufacturers touch multiple industries, including auto manufacturing, construction, infrastructure, and national defense, according to data from the American Iron and Steel Institute. SLX rose 3.4% on Monday. Tariffs on steel and aluminum increase prices for U.S. steel stocks and ETFs like SLX by creating a more favorable pricing environment for domestic producers. Here's how: Reduced Foreign Competition: Tariffs make imported steel and aluminum more expensive, reducing competition from foreign producers. This allows US companies to raise prices without losing market share. Higher Domestic Steel Prices: With fewer cheap imports, domestic steelmakers can charge more for their products, boosting revenue and profit margins. Increased Demand for US Steel: Many US manufacturers switch to domestic suppliers to avoid tariffs, driving higher sales for US steel companies. Improved Earnings & Valuations: Higher steel prices and demand increase profitability, leading to higher stock valuations as investors anticipate stronger financial performance. Government Infrastructure Spending: Tariffs often come alongside policies that support US manufacturing, such as infrastructure bills, which further drive demand for steel and aluminum. In summary, tariffs can act as a protective measure for US steelmakers, allowing them to sell at higher prices and improve their financial health, which in turn supports higher stock prices in the sector. However, the potential risk of retaliatory measures from other countries and inflationary pressures | © Copyright 2025 All rights reserved
Yahoo
11-02-2025
- Business
- Yahoo
SLX Shines as US Steel Stocks Rise on New Tariffs
Steel and aluminum stocks, along with the VanEck Steel ETF (SLX), rose following the announcement of new tariffs on imported metals. This protectionist measure is expected to reduce competition for domestic producers. Major players in the steel industry, like Charlotte, North Carolina-based Nucor Corp. (NUE), and Pittsburgh, Pennsylvania-headquartered US Steel Corp (X), both top holdings in the SLX ETF, climbed on Monday. The tariffs are anticipated to boost domestic steel and aluminum prices, increasing profitability for US producers. Reduced competition may lead to higher market share for domestic companies, driving revenue growth. The long-term impact of these tariffs on the broader economy remains uncertain, as these tariffs carry potential risks. Retaliatory tariffs from other countries could harm US exports and negatively impact the broader economy. Additionally, increased production costs for industries reliant on steel and aluminum could fuel inflationary pressures. US steel and aluminum manufacturers touch multiple industries, including auto manufacturing, construction, infrastructure, and national defense, according to data from the American Iron and Steel Institute. SLX rose 3.4% on Monday. Tariffs on steel and aluminum increase prices for U.S. steel stocks and ETFs like SLX by creating a more favorable pricing environment for domestic producers. Here's how: Reduced Foreign Competition: Tariffs make imported steel and aluminum more expensive, reducing competition from foreign producers. This allows US companies to raise prices without losing market share. Higher Domestic Steel Prices: With fewer cheap imports, domestic steelmakers can charge more for their products, boosting revenue and profit margins. Increased Demand for US Steel: Many US manufacturers switch to domestic suppliers to avoid tariffs, driving higher sales for US steel companies. Improved Earnings & Valuations: Higher steel prices and demand increase profitability, leading to higher stock valuations as investors anticipate stronger financial performance. Government Infrastructure Spending: Tariffs often come alongside policies that support US manufacturing, such as infrastructure bills, which further drive demand for steel and aluminum. In summary, tariffs can act as a protective measure for US steelmakers, allowing them to sell at higher prices and improve their financial health, which in turn supports higher stock prices in the sector. However, the potential risk of retaliatory measures from other countries and inflationary pressures | © Copyright 2025 All rights reserved Sign in to access your portfolio
