Steel stocks down after reports of US-Mexico talks to cut Trump's tariffs

Shares of U.S. steel companies are down on Wed following news that the U.S. and Mexico are holding talks about canceling or reducing President Donald Trump's tariffs

Both countries are negotiating to lower Trump's 50% tariffs on steel imports and the likely outcome would include a quota arrangement, Reuters reported citing sources familiar with the matter

Nucor NUE.N is down ~6%, Cleveland-Cliffs CLF.N down ~8%, Steel Dynamics STLD.O off ~3%, U.S. Steel Corp X.N ~0.5% lower, and Commercial Metals CMC.N> down ~4%

Mexico was the third largest source of U.S. steel imports in 2024 at 3.52 million net tons, according to U.S. Census Bureau data compiled by the American Iron and Steel Institute

S&P 1500 steel index .SPCOMSTEEL index up 9.8% YTD but down 2% on the week