Trump Could Reduce Steel And Aluminum Tariffs And These Stocks Are Responding

• Major steelmakers Cleveland-Cliffs, Nucor, and Steel Dynamics dropped 3-5% pre-market, while aluminum producers Century Aluminum and Alcoa fell 12% and 5% respectively
• High steel and aluminum tariffs have pressured U.S. manufacturers across sectors, from automakers to beverage makers, contributing to affordability challenges
• Despite the tariff reduction news, the steel industry group has gained nearly 16% in 2026 so far, ranking 22nd out of 197 industries tracked by IBD

Summary: Trump Steel and Aluminum Tariff Reduction Impacts Metal Stocks

President Donald Trump is planning to reduce certain steel and aluminum tariffs, according to a Financial Times report on Friday, triggering significant declines in U.S. metal producer stocks during pre-market trading.

Key Developments

The White House is reviewing products subject to tariffs of up to 50% on steel and aluminum imports, with plans to exempt some items and launch more targeted security probes. This decision comes as the administration addresses an affordability crisis, as high tariffs have pressured U.S. manufacturers including automakers and beverage makers.

Market Impact

Major steel and aluminum stocks declined sharply in pre-market trading:

Steel Producers:

• Cleveland-Cliffs: down more than 3%
• Nucor: declined over 4%
• Steel Dynamics: fell nearly 5%

Aluminum Producers:

• Century Aluminum: plunged 12%
• Alcoa: dropped approximately 5%

Sector Performance

Despite the negative reaction to tariff reduction news, the steel and aluminum sector has performed strongly year-to-date in 2026:

• The 16-stock steel/aluminum industry group has gained nearly 16%, ranking 22nd out of 197 industries tracked by IBD
• The 25-stock Metal Processing & Fabrication industry group is up more than 18%

Company Metrics

Cleveland-Cliffs currently holds an IBD Composite Rating of 47, a Relative Strength Rating of 64, and an EPS Rating of 21, indicating moderate market positioning.

The tariff reduction represents a policy shift that could benefit manufacturers using these materials while potentially pressuring domestic producer margins.