Steel Stocks Unfazed by Commerce's $2.9B CORE Imports Decision

US steel stocks closed lower despite the Department of Commerce's decision on $2.9B in imported CORE imports from 10 countries. The agency recommended anti-dumping and countervailing duty rates ranging from 17-110%. The protectionist measure had no major impact on steel stocks, with major firms like Nucor, ArcelorMittal, and Steel Dynamics seeing their share prices end 1% lower. However, the shares of Reliance Steel and Cleveland-Cliffs managed to clinch marginal increases. The International Trade Commission will assess the level of harm to the domestic steel industry due to foreign companies' "dumping" of CORE products into the US.

US steel stocks closed lower on July 2, 2025, despite the U.S. Department of Commerce's decision to impose anti-dumping and countervailing duties on $2.9 billion in imported corrosion-resistant steel (CORE) products from 10 countries. The agency recommended duty rates ranging from 17% to 110% [2].

Major steel firms such as Nucor, ArcelorMittal, and Steel Dynamics saw their share prices end 1% lower. However, Reliance Steel and Cleveland-Cliffs managed to achieve marginal increases. The International Trade Commission (ITC) will now assess the level of harm to the domestic steel industry due to foreign companies' "dumping" of CORE products into the U.S. [2].

The decision is part of a broader trend of protectionist measures aimed at safeguarding the domestic steel industry. The U.S. Commerce Department has been active in investigating imports under Section 232 of the Trade Expansion Act, which allows for the imposition of tariffs on national security grounds [1]. The tariffs are designed to protect U.S. steel producers from foreign competition, but they also increase the cost of raw materials for domestic manufacturers.

The impact of these tariffs on the truck manufacturing industry is significant. Truck manufacturers that rely on imported steel, aluminum, and copper derivatives face 50% tariffs under Section 232. This has led to increased production costs and a cost disadvantage for U.S. producers compared to those in Mexico, which benefit from the USMCA agreement [1]. The tariffs have also contributed to a decline in U.S. truck production, with forecasts predicting a 11% year-on-year decline in 2026 [1].

The U.S. steel industry is a critical component of the broader economy, and the decision to impose tariffs on CORE products reflects a continued effort to bolster domestic production. However, the long-term effects of these tariffs on the broader economy and specific industries like truck manufacturing remain to be seen. The ITC's determination will play a crucial role in shaping the final outcome of these tariffs and their impact on the domestic steel industry.

References:
[1] https://www.cryptopolitan.com/trumps-tariffs-hurt-us-truck-industry/
[2] https://ca.finance.yahoo.com/news/us-commerce-department-affirms-anti-184542179.html