United States President Donald Trump is doubling down on imposing tariffs on goods entering the country, this time targeting a 25% tax on all steel and aluminum imports.
This policy shift, which seeks to boost the local industry, has already sparked a positive reaction in the stock market, with steel stocks showing immediate gains.
Although some analysts warn of potential retaliation from affected countries, the short-term gains hint at a possible investment opportunity in the sector.
Picks for you
Therefore, if the steel industry sees further upside, the following two equities are well-positioned to benefit investors.
United States Steel Corporation (NYSE: X)
The announcement of new tariffs could significantly catalyze a resurgence in United States Steel (NYSE: X) prospects.
Historically, the company has been highly responsive to positive news, given its strategic position in the U.S. market and existing production capabilities.
United States Steel has maintained a notable industry position by producing high-quality steel for the automotive, construction, and appliance sectors.
Beyond its market positioning, the company is aggressively modernizing its facilities to enhance efficiency and align with potential regulatory changes. For instance, U.S. Steel is expanding its Electric Arc Furnace (EAF) capacity, with the Big River 2 (BR2) mini-mill set to nearly double production.
With a possible shift in U.S. steel sentiment, the firm will be looking for a recovery after posting disappointing results in the most recent quarter. For Q4 2024, the Pittsburgh-based giant reported revenue of $3.51 billion, down 15% year over year.
Despite the possible positive impact of tariffs, uncertainty remains regarding Japan-based Nippon Steel’s proposed $15 billion acquisition of U.S. Steel. The deal faces potential opposition from U.S. regulators.
As of press time, X was trading at $38.70, up 4.7% in the last trading session, with a year-to-date rally of over 18%.
Nucor (NYSE: NUE)
Nucor (NYSE: NUE) is well-positioned to benefit from a revitalized steel industry. It is the largest producer in the U.S. and the largest scrap metal recycler in North America.
Due to its diversified portfolio, which spans steel mills, steel products, and raw materials operations, Nucor has the potential to quickly adapt to changing policies.
A key advantage for Nucor is its investment in electric arc furnace technology, which utilizes scrap metal. This puts Nucor at the forefront of environmentally responsible steelmaking.
With tariffs likely to curb reliance on foreign steel—much of which may not meet U.S. environmental standards—Nucor’s sustainable approach could prove to be a major competitive edge.
The firm is also expanding its production capacity to strengthen its low-cost advantage and profitability. Key projects, including the Gallatin and Brandenburg mills, are already delivering strong results. Nucor is investing $6.5 billion in eight significant projects through 2027, including the Apple Grove, WV, sheet mill, and rebar micro mills.
Additionally, Nucor’s strategic acquisitions will likely fuel growth beyond steelmaking. For instance, its purchase of Southwest Data Products enhances its data center solutions, while acquiring Rytec Corporation expands its portfolio into high-performance doors, creating cross-selling opportunities.
As of press time, NUE was trading at $139.55, having rallied almost 20% in 2025.
In summary, while U.S. steel stocks may benefit from tariffs, potential retaliation could introduce market uncertainty, offsetting any gains.
Featured image via Shutterstock
