Trump Goes Scorched-Earth On Steel Tariffs, Jacking Dial Up to 11 (Sup, 50%)...

Donnie Politics is back on his saddle, and if you thought the “America First” was even more of a priority, I’ve got some 50% import tariffs to sell you. The man, the myth, the legend waltzed into U.S. Steel’s Irvin Works in West Mifflin, PA, grabbed the mic, and promptly doubled tariffs on foreign steel because, apparently, math is for losers and nuance is for French people. 

(Source: Giphy) 

“We’re going to bring it from 25% to 50%,” Trump shouted at a crowd of steelworkers who looked like they’d just been told their jobs were being replaced by Salesforce Agents and a box of Crayolas. “At 25%, they can sort of get over that fence. At 50%, they can no longer get over the fence.” Subtlety? Never heard of her. 

In short, the new import duties hit June 4. That’s less than two weeks for literally every steel trader, automaker, and construction CEO to start stress-eating Tums by the handful. U.S. Steel (fyi, market closed before the announcement, but expect chaos on Monday) is getting the kind of direct government intervention that would make old-school economists projectile vomit. For U.S. steel producers, this is the cheat code… assuming their business model is making slightly less expensive steel than their Japanese conglomerate. 

(Source: CNBC) 

Speaking of Japanese, if you recall this also comes right on the heels of Trump “clearing” the U.S. Steel–Nippon merger, which is either a partnership, a “planned investment,” or a hostile annexation, depending on which news outlet you watch. U.S. Steel says it will be a “wholly owned subsidiary” of Nippon Steel North America. Trump says it’s NOT a foreign takeover, and everyone should chill… the U.S. will have a “golden share” (not a real thing) that lets the government pick board seats. Bigly. 

Oh, and there’s also a $14 billion “investment” coming from Nippon, plus a promise to keep the blast furnaces hot and a $5,000 bonus for every steelworker. So are the tariffs really that bad then? They’re pretty bad. Tariffs at 50% will jack up costs for every American company dumb enough to need steel that isn’t “Made in Pittsburgh.” Car companies are about to get whacked, and construction project budgets are about to get charged through the nose.

(Source: Giphy) 

And that’s not even getting into what happens when China, Japan, or the EU decide to retaliate. The cherry on top? The whole tariff regime is under legal assault after a court just ruled several of Trump’s other tariffs illegal. But the steel ones are (for now) protected by a “national security” loophole… presumably right under the Unitary Executive Theory loophole. 

In the end, here comes volatility folks. The U.S. steel sector is about to be the WallStreetBets of global commodities. If you’re long Ford, GM, or Caterpillar, get ready for a wild summer. If you’re long Tums, Pepto, or … liquor stocks… well, then you may be hedged, for now. All jokes aside, every day feels like stepping on glass, and like Momma Gump says… you never know what you’re going to get. So place your bets accordingly and stay safe out there, friends. Until next time… 

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Stocks.News holds positions in Ford as mentioned in the article.