Trump Administration Expands Steel and Aluminum Tariffs, EU and US Reach Framework Agreement, Trump Issues Executive Order to Boost Space Industry Competitiveness

President Trump has added 407 derivative product codes to steel and aluminum tariffs, impacting companies like ArcelorMittal (MT), Cleveland-Cliffs (CLF), Nucor (NUE), Steel Dynamics (STLD), and U.S. Steel (X). The US and EU have also agreed on a Framework Agreement on reciprocal, fair, and balanced trade. Trump issued an executive order to boost US competitiveness in the commercial space industry, benefiting Rocket Lab (RKLB) and Intuitive Machines (LUNR). Evercore ISI raised price targets on Walmart (WMT) to $110 and AutoZone (AZO) to $4,250.

The Trump administration has significantly expanded its 50% tariffs on steel and aluminum imports by adding 407 derivative product codes to the list of goods subject to these levies. This move, effective August 18, 2025, will impact a wide range of industries and publicly traded companies, including those in the steel and aluminum sectors [1].

The Commerce Department announced the addition of these product codes in a Federal Register notice. The new tariffs will apply to goods containing steel and aluminum, with non-steel and non-aluminum content subject to the existing tariff rates imposed on goods originating from specific countries [1]. Companies such as ArcelorMittal (MT), Cleveland-Cliffs (CLF), Nucor (NUE), Steel Dynamics (STLD), and U.S. Steel (X) will be directly affected by this expansion.

The U.S. and European Union have also agreed on a Framework Agreement on reciprocal, fair, and balanced trade. This agreement includes plans to reduce tariffs on European automobiles and open the door to new potential discounts for steel and aluminum [2]. The deal aims to provide predictability and stability in the largest trading partnership in the world, strengthening transatlantic relations and ensuring security for European jobs and economic growth in the long term [2].

Additionally, President Trump issued an executive order to boost U.S. competitiveness in the commercial space industry, benefiting companies like Rocket Lab (RKLB) and Intuitive Machines (LUNR) [3]. Evercore ISI has raised price targets on Walmart (WMT) to $110 and AutoZone (AZO) to $4,250 [3].

The impact of these tariffs and trade agreements on the financial markets and the broader economy remains to be seen. However, investors and financial professionals should closely monitor these developments to understand the potential implications for these companies and the industries they serve.

References:
[1] https://www.reuters.com/business/us-commerce-dept-widens-products-subject-steel-aluminum-tariffs-2025-08-15/
[2] https://www.ttnews.com/articles/eu-us-next-tariff-steps
[3] https://www.commerce.gov/news/press-releases/2025/08/joint-statement-united-states-european-union-framework-agreement