Beyond the Tariff Tango: Trump’s Steel Move Is a High-Stake Win for America

America was the real winner on Sunday. 

Look, I wasn’t the only one screaming, “f*%k the Chiefs!” at my TV on Super Bowl Sunday. And despite the overwhelming hate and vitriol brought upon the team by football fans everywhere, you kinda have to admit that it brought everyone together. 

I didn’t realize it at first, but all it took was my good friend — a lifelong Steeler’s fan — to start cheering for the birds. 

Mind you, this wasn’t the first time Pittsburgh fans gave Philly sports a little love, and it’s one helluva rabbit hole down NFL history. 

Back in 1943, the U.S. was embroiled in the second World War. Both the Steelers and Eagles found themselves in a bit of trouble since they had lost a lot of their players to the war effort. 

In an effort to salvage their seasons, the two joined forces to form a team that became known as the Steagles. 

It was a team for the ages, too. Not only did their punter play despite having a prosthetic leg, but the team’s leading receiver that year was blind in one eye. 

Both coaches had so much contempt for the other that neither coach would submit to the other, so the Steagles were led by two, and the team went on to have a 5-4-1 record that season. 

However, Pittsburgh fans had even more reason to cheer Sunday night when President Trump announced his next round of tariffs.

This time, however, things are a bit different…

The Tariff Tango Dances On

We talked recently about the tariff tango playing out between the Trump administration and the rest of the world. 

Remember, there was a problem with the last tariff fight. We knew any tariffs levied against Canada’s oil industry would backfire spectacularly if implemented over the long term, because that heavy Canadian crude is simply too critical to our refineries along the Gulf Coast — we’d be shooting ourselves in the foot. 

Then on Sunday, President Trump announced that 25% tariffs on all steel and aluminum imports were coming. In this case, the threat of tariffs were more of a bargaining chip for President Trump in his high stakes poker game with Canada and Mexico, in which both capitulated rather quickly.

Before you start rolling your eyes at this move, it’s important to understand that this is quite a bit different this time around.

You see, the United States is the clearcut winner if these tariffs go into effect. 

Do you think it was a coincidence that just last week Japan announced it was pouring money into U.S. steel (NYSE: X)? Rather than acquiring the company, Nippon announced it would invest heavily into the $8.6 billion steel producer. 

The thing is, I can’t help but think that President Trump found himself better leverage this time. Canada and Mexico just happen to be our largest sources for steel and aluminum imports — to the tune of roughly $21 billion every year. 

So much for the respite from tariffs that came last week. 

Unlike the energy tariffs that were rescinded last time, I wouldn’t be surprised to see this administration follow through on these. 

The United States is the world’s fourth largest steel producer, following China, India, and Japan. And there’s quite a few interesting opportunities among domestic steel producers, including Steel Dynamics (NASDAQ: STLD) and the heavy-weight in the group, Nucor Corp. (NYSE: NUE). 

Both are still trading at attractive metrics in spite of the recent surge from President Trump’s tariff announcement. 

Buckle up, because I have a feeling he’s just getting started, too.