President-elect Donald Trump has denied a Washington Post report that said he plans to impose blanket tariffs on critical imports, implying a pared-back tariff policy. Trump denied the claims on his Truth Social platform, saying the report was “fake news.” Trump has announced his intention to impose tariffs of 10% on all goods and tariffs of up to 60% on Chinese imports. He previously announced his intention to impose 25% tariffs on imports from Mexico and Canada from day one. The tariffs are intended to protect domestic production of US goods. Here are two stocks that would benefit from import tariffs.
Nucor: Protecting Domestic Steel Production
Charlotte, North Carolina Nukor company. New York Stock Exchange: NUE is a major domestic steel producer. Nucor shares are down 29% in 2024, significantly underperforming the benchmark indexes. The leader in the basic materials sector is the largest steel producer in the United States by production volume. income.
Canada and Mexico are the first and third largest steel exporters to the United States.
Trump announced his intention to impose 25% import tariffs on Canada and Mexico on the first day of his second term. This would be a big boon for Nucor and domestic steel producers despite the lull in demand. Canada is the largest steel importer to the United States (19%), followed by Brazil (18%) and Mexico (13% of total US imports). This could shift more demand to Nucor and boost their profits. Whether it is even possible to impose tariffs on Day One remains controversial since Trump’s 25% steel tariffs took nearly two years during his first term.
Is this the calm before the storm?
Markets have not taken the potential tariffs seriously, as evidenced by the lull in prices. However, Nucor issued downward guidance on December 16, 2025, which continues to limit rebounds. Nucor forecast fourth-quarter 2024 earnings per share of 55 cents to 65 cents, versus analyst consensus estimates of 89 cents. The main factor behind the decline in steel mills’ earnings is lower volumes and lower average selling prices. However, the company expects earnings to improve in the second half of 2025.
Nucor ready for recovery
Nukor today
As of 3:58 pm ET
- 52 week range
- $112.25
▼
$203.00
- Dividend yield
- 1.79%
- P/E ratio
- 11.88
- Target price
- $165.63
Apple Growth’s West Virginia sheet mill was a $3 billion investment by Nucor to increase capacity to three million tons per year. The new 1,700-acre plant will help the company supply steel products to the Northeast and Midwest regions.
In total, Nucor has invested more than $6 billion since the COVID-19 pandemic to strengthen its capabilities through upgrades and acquisitions. Electric arc furnace (EAF) technology has been proven to be more efficient and environmentally friendly than traditional blast furnaces like those used USA Steel Co. New York Stock Exchange: Xwhose planned merger with Japan’s Nippon Steel was blocked by the Biden administration.
Tesla: Preparing America for Electric Vehicles
Tesla today
As of 4:00 pm ET
- 52 week range
- $138.80
▼
$488.54
- P/E ratio
- 110.50
- Target price
- $296.60
Leading domestic manufacturer of electric vehicles (EV), Tesla Inc. NASDAQ:TSLAwill continue to favor import tariffs. This not only reduces competition from imported electric vehicles, but also makes domestically produced electric vehicles more competitive in price. Tesla’s investments in domestic battery production, such as its Gigafactory in Nevada, will also give them a cost advantage over imported battery products.
Of course, it doesn’t hurt that Tesla CEO Elon Musk is part of Trump’s inner circle and co-directs the Department of Government Effectiveness (DOGE). Musk is also pushing for faster regulatory approval of driverless and autonomous vehicles (AVs) to speed up the launch of his robotaxi network.
Potential Retaliation Is a Looming Threat
While Musk’s close ties to Trump benefit Tesla, they could also become a target in a trade war, especially with China. Tesla gets about 20% of its revenue from China. China recently banned exports of the rare earth elements germanium, gallium and antimony to the United States on December 3, 2024, in response to Biden’s restrictions on semiconductor equipment products to China. There is nothing stopping them from taking measures that will harm Tesla’s Chinese business. Other countries could also retaliate by imposing higher tariffs on Tesla and American cars, further escalating trade wars.
Before you consider Nucor, here’s what you need to hear.
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