Live Updates > Live Update Details
2026-02-13 20:05:08
[Trump Plans to Reduce Steel and Aluminum Tariffs to Combat Inflation; US Steel and Aluminum Stocks Plunge in Pre-Market Trading] ⑴ The Financial Times reported on Friday, citing sources, that US President Trump plans to reduce tariffs on some steel and aluminum products. The report stated that officials from the US Department of Commerce and the Office of the US Trade Representative believe that current tariffs have driven up prices for goods such as pie tins and food and beverage cans, thus harming consumers. ⑵ Voters across the country are generally concerned about prices, and the cost of living is expected to be a major factor in the November midterm elections. The latest polls show that only 30% of Americans approve of Trump's approach to the cost of living, while 59% disapprove, including nine-tenths of Democrats and one-fifth of Republicans. ⑶ Following the announcement, shares of US steel and aluminum producers plummeted in pre-market trading. Nucor and Cleveland Cleveland fell about 2.5%, and SteelPower fell 4%. Among aluminum producers, Century Aluminum fell 6%, and Alcoa fell 2%. The benchmark aluminum price on the London Metal Exchange fell to a one-week low. ⑷ Trump imposed tariffs of up to 50% on imported steel and aluminum last year and has repeatedly used them as a negotiating tool. The report states that the government is currently reviewing the list of products affected by the tariffs, planning to exempt some products, halt the expansion of the list, and instead launch more targeted national security investigations on specific goods. (5) From a policy perspective, Trump's move aims to alleviate public anxiety about prices before the midterm elections, shifting towards precise tariffs instead of a comprehensive tariff increase, addressing voter concerns without completely abandoning trade pressure tools. The sharp drop in steel and aluminum stocks reflects market concerns that domestic producers will lose their pricing advantage under tariff protection. (6) The market should pay attention to the specific scope and effective date of the exemption list, and whether this move will affect subsequent negotiation strategies with other trading partners.
