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Trump tariffs are a 'Goldilocks' outcome for steel stocks: Credit Suisse

Key Points
  • Credit Suisse tells clients that President Trump's tariffs create a "goldilocks" scenario for steel stocks, benefitting from either better prices or stronger demand as trade deals improve.
  • "The combination of 25 percent tariffs against key swing suppliers and a quota on more traditional baseload import supply is still a major positive," wrote Credit Suisse's Curt Woodworth.
A worker cuts a steel coil at the Novolipetsk Steel PAO steel mill in Farrell, Pennsylvania, March 9, 2018.
Aaron Josefczyk | Reuters

President Donald Trump's recent decision to impose tariffs on foreign steel creates a "Goldilocks" outcome for the United States, Credit Suisse told clients.

While 25 percent tariffs on imported steel should prove a tailwind for U.S. steel prices, analyst Curt Woodworth added that any exemptions in the policy should result in better trade deals and benefit U.S. automakers, another positive for the metal market.