Stocks of U.S. metal producers moved lower after reports said the Trump administration is assessing changes to existing tariffs on steel and aluminum products. Alcoa (NYSE:AA) fell 4%, Century Aluminum (NASDAQ:CENX) dropped 6%, and Freeport-McMoRan (NYSE:FCX) declined 1.5% as investors digested the potential policy shift.
According to the Financial Times, officials are reviewing the current roster of goods subject to the levies and are considering exempting certain items while stopping efforts to expand those lists. Rather than sustain broad-based tariffs, the administration reportedly plans to pursue more narrowly tailored national security investigations that target specific products.
The potential revision stems in part from concerns inside trade agencies. The Commerce Department and the U.S. Trade Representative’s office have reportedly raised alarms that the tariffs are contributing to higher consumer prices for a range of goods, the Financial Times said, citing three people familiar with the matter.
Market reaction was swift among companies that had previously benefited from the protective measures. Metal producers such as Alcoa and Century Aluminum saw their shares fall, with Century experiencing the steepest drop among the named companies. The report noted Century Aluminum’s heavier reliance on the U.S. market as a contributing factor to its relative weakness.
When contacted for comment, the Commerce Department, the U.S. Trade Representative’s office and the White House declined to provide statements to the Financial Times.
Context and implications
The developments described in the Financial Times piece suggest a possible policy recalibration: rather than broad tariffs that apply across many product lines, officials may shift toward exemptions and case-by-case national security probes. That approach would alter the trade protection landscape that has supported some domestic metal producers.
Market reaction
- Alcoa shares dropped 4% following the report.
- Century Aluminum shares fell 6%, the largest decline among the companies noted.
- Freeport-McMoRan declined 1.5% on the same news.
Investors appear to be pricing in the prospect of narrower trade protection for steel and aluminum products, a shift that undercut the earlier benefit those levies provided to domestic metalmakers.
Summary
Reports that the administration is reviewing and may narrow tariffs on steel and aluminum prompted declines in the shares of several metal producers. Officials are said to be considering exemptions and a halt to expanding tariff lists, opting instead for more targeted national security investigations. Trade agencies have flagged concerns about the tariffs’ impact on consumer prices, and government offices contacted for comment declined to respond.