If Trump Lowers Steel Tariffs, Is Nucor Still a Buy?

"Nucor ( ) has delivered strong returns since President Trump imposed tariffs on imported steel last year. The stock has climbed 16% year-to-date in 2026 and gained 41% over the past 12 months, outperforming broader market indices amid protected domestic pricing. Higher tariffs - reaching up to 50% - shielded U.S. producers from cheap foreign imports, boosting revenues for companies like Nucor. However, reports indicate Trump is now considering scaling back these measures."

"According to a Financial Times report, Trump intends to reduce some tariffs on steel and aluminum products. This includes exemptions for certain items, pausing expansions to tariff lists, and initiating more focused national security investigations into specific goods. The moves aim to address complaints that the duties have inflated costs for consumers. For instance, prices have risen for products like pie tins and food and drink cans. Broader tariff hikes last year affected over 400 items, including wind turbines, mobile cranes, appliances, bulldozers, railcars, motorcycles, marine engines, and furniture."

"Administration officials from the Commerce Dept. and U.S. Trade Representative's office argue that these tariffs, used as leverage in trade negotiations, now burden everyday Americans. A Reuters/Ipsos poll shows 59% of Americans disapprove of Trump's handling of rising costs, highlighting cost-of-living pressures as a political risk for the November midterms. While no specific countries are named for exemptions, the policy shift reflects a response to economic feedback."

Nucor has delivered strong returns after tariffs on imported steel, with the stock up 16% year-to-date in 2026 and 41% over the past 12 months, supported by protected domestic pricing. Tariffs reached up to 50%, shielding U.S. producers from cheaper foreign imports and boosting revenues. Plans to reduce some steel and aluminum tariffs would include exemptions, pauses to tariff-list expansions, and targeted national security probes. Officials cite rising consumer prices on everyday goods and a Reuters/Ipsos poll showing 59% disapproval of rising-cost handling. Lower tariffs could expose domestic producers to import competition and pressure prices and margins.

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