Nucor Corp (NYSE: NUE) is pushing up this morning after the United States announced its first batch of tariffs against China, Mexico, and even its lifelong ally, Canada.
Over the weekend, President Donald Trump raised tariffs by 10% on all imports from China and about 25% each on Mexico and Canada.
The new tariffs are aimed at protecting American industries from unfair competition and illegal practice.
In particular, they stand to benefit the domestic steel producers.
That’s what makes Nucor stock an exciting pick following Trump’s tariffs announcement, according to famed investor Jim Cramer.
How could Trump tariffs help Nucor stock?
Nucor could emerge as a winner since Trump tariffs could help American steel stocks by increasing the cost of historically cheap foreign steel – particularly from China.
During his first term, Donald Trump announced a 25% tariff on steel imports to disable foreign steel from being dumped into the US market in pursuit of creating a more level playing field for domestic producers.
In the long run, that help Nucor to increase its market share and the overall profitability.
Nucor stock is up 4.0% in premarket today as its foreign competitors are now expected to face higher costs in the US – spurring hopes that better days are coming for the Charlotte headquartered firm.
NUE benefitted under Trum’s first term
Nucor is strongly positioned to benefit from Trump tariffs also because it’s been investing rather heavily in advanced manufacturing technologies and environmentally friendly practices.
The protectionist policy could make it easier for Nucor to continue to invest in such initiatives and fully capitalise on reduced competition from abroad.
Last week, Nucor reported its financial results for the fourth quarter that topped Street estimates.
Leon Topalian – its chief executive told investors at the time:
Market conditions are starting to improve and should gain momentum as we work our way into 2025.
The US economy is still on the front en of several steel-intensive megatrends and Nucor is well positioned to supply those needs.
Nucor stock has gained a total of close to 20% since the start of 2025.
Should you invest in Nucor shares today?
Despite a significant year-to-date rally, it may still not be too late to invest in Nucor shares.
The investment firm reiterated is “overweight” rating on the largest and most diversified steelmaker in the US.
JPM’s price target of $150 translates to about a 13% upside in Nucor stock from current levels.
Additionally, NUE currently pays a dividend yield of 1.71% that makes it all the more attractive to own for income investors.
All in all, President Trump’s tariffs on imports from China, Mexico, and Canada may spell opportunity for Nucor to improve its market position and drive growth.
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