Steel & aluminum tariffs benefit US upstream steel companies' profits
The US upstream steel companies benefited from the trade war. It was reported that Nucor Corporation's second-quarter earnings report hit a new high, and the profits doubled more than expected. Nucor’s CEO John Ferriola said that he was satisfied with tariffs policy and expected to invest US$1 billion to expand the company's business.
It was reported that US President Donald Trump’s policy of steel and aluminum tariffs have caused steel prices to soar by 18% which brought profits to the US upstream steelmakers, yet it harmed to the downstream steel producers due to high costs.
Moreover, General Motors (GM) lowered its earnings outlook last week and warned that the costs of related products would increase by US$300 million because of rising steel and aluminum costs.
