UPDATE: Trump announces tariffs.
Tired of winning yet?
There’s a musky aroma in the steel sector today. At the vanguard of this movement are the actions of President Trump — his fierce open handed smack across the face of President Xi of China. We’re going to impose tariffs and there’s not a single damned thing to be done about it. It’s as simple as that.
Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world. We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!
— Donald J. Trump (@realDonaldTrump) March 1, 2018
According to the Commerce Department, steel tariffs will be in the ballpark of 24%.
Here are today’s beneficiaries.
X +5.2%
AKS +8%
CLF +4.7%
STLD +2.5%
NUE +2%
The day is young old sport. Let’s give the news some time to marinate in the thick brains of asset allocators. I’m sure that once they do the math and set aside their political reservations, they will support this five fingered assault across the collective faces of the Chinese steel industry, as I do, and get long CLF in bulk size.
Today is reshuffling day for Exodus Quant monthly strategy. I’ll be done by noon.
Keep those hedges on. We’re not done barreling lower.
Ciao.
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Trump is a dufus. He can “…want free, fair and SMART TRADE!” but there ain’t and never will be free markets in a world of fake money. It’s an impossibility, a logical fallacy he’s peddling.
Read sarc’s comments on ZPN latest article you pussy
For projects with standards and zero tolerance for sub-quality variations eg bridges, pipelines, hoisting and cranes etc, China steel can’t be used in any case. My stainless steel bbq rusted made in China simple answer. Politically one might have gone with the sub-par product arguement. The China steel goes into so much crap that ends to scrap soon which is unacceptable most times and places. So a tarriff on something not really wanted works for me.