President-elect Donald Trump has denied a Washington Post report that suggested he plans to issue global tariffs on vital imports, implying a reduced tariff policy. Trump refuted these allegations on his “Truth Social” platform, claiming that the report was “fake news.” Trump has announced his intention to impose tariffs of 10% on all areas, and customs duties of up to 60% on Chinese imports. He previously announced his intention to impose 25% tariffs on imports from Mexico and Canada on day one. The tariffs are intended to protect domestic production of American goods. Here are two stocks that will benefit from import tariffs.
Nucor: Protecting domestic steel production
Charlotte, North Carolina based Nucor company New York Stock Exchange: New It is a major domestic steel producer. Nucor stock fell 29% in 2024, which was significantly underperforming benchmark indices. the The leader of the basic materials sector is the largest steel producer in the United States in terms of… profit.
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 will be a big boon for Nucor and local steelmakers despite the decline in demand. Canada is the largest importer of steel to the United States at 19%, followed by Brazil at 18% and Mexico at 13% of total US imports. This could shift more demand to Nucor and improve its margins. There is debate over whether tariffs could be imposed on day one, as Trump’s 25% steel tariffs took nearly two years to implement during his first term.
Is it the calm before the storm?
Markets did not take potential tariffs seriously, as evidenced by lower prices. However, Nucor issued bearish guidance on December 16, 2025, which continued to put a cap on retracements. Nucor guided fourth-quarter 2024 EPS of 55 cents to 65 cents versus analysts’ consensus estimate of 89 cents. The biggest reason for lower profits in steel mills is lower volumes and lower average selling prices. However, the company expects earnings to improve in the second half of 2025.
Nucor is ready for recovery
Nucor today
As of 03:58 PM ET
- 52 week range
- $112.25
▼
$203.00
- Dividend yield
- 1.79%
- P/E ratio
- 11.88
- Price target
- $165.63
The Apple Growth plate mill plant in West Virginia was a $3 billion investment from Nucor to boost production capacity by up to three million tons per year. The new plant will cover 1,700 acres to help the company supply steel products to the Northeast and Midwest regions.
In total, Nucor has invested more than $6 billion since the outbreak of the coronavirus (COVID-19) pandemic to enhance its capacity through upgrades and acquisitions. Electric arc furnace (EAF) technology has proven to be more efficient and environmentally friendly than conventional blast furnaces, such as those used by American Steel Company New York Stock Exchange: 10thwhose planned merger with Japan’s Nippon Steel Corporation has been blocked by the Biden administration.
Tesla: Making America EV Ready
Tesla today
As of 04:00 PM ET
- 52 week range
- $138.80
▼
$488.54
- P/E ratio
- 110.50
- Price target
- $296.60
The leading domestic electric vehicle (EV) manufacturer, Tesla company Nasdaq: Teslawill continue to be the beneficiary of import tariffs. It not only reduces competition from imported electric vehicles, but also makes the prices of domestically manufactured electric vehicles more competitive. Tesla’s investment in domestic battery production, such as its Nevada Gigafactory, will also give it 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-chair of the Department of Government Efficiency (DOGE). Musk is also seeking faster regulatory approval for autonomous vehicles and autonomous vehicles (AV) to accelerate the rollout of his Robotaxi network.
Potential retaliation is an all-encompassing threat
While Musk’s close ties with Trump are beneficial for Tesla, they could also be a target in a tit-for-tat trade war, especially with China. Tesla generates about 20% of its revenues 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 China’s semiconductor equipment products. Nothing stops them from taking action to hurt Tesla’s business in China. Other countries could also retaliate by imposing higher tariffs on Tesla cars and American vehicles, escalating trade wars.
Before you consider Nucor, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and Nucor wasn’t on the list.
While Nucor currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
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