Steel stocks fall as they get a taste of the ‘TACO trade’

MarketWatch

by Tomi Kilgore

February 13, 2026

AI-Generated Deep Dive Summary

Steel stocks experienced a decline after investors reacted to reports suggesting that President Donald Trump may be easing his stance on tariffs imposed on steel and aluminum imports. The Financial Times reported that the Trump administration is reviewing certain steel and aluminum products previously hit with tariffs of up to 50%, potentially scaling back or exempting some items. This news came amid growing public backlash over rising costs, leading to disappointment among investors who had hoped for a continued strong trade policy. While shares initially fell, losses were partially recovered after government officials denied any immediate changes to the tariff structure. The tariffs, implemented last summer as part of Trump’s “TACO trade” strategy (a play on the Spanish word for “tomato,” referencing U.S.-Mexico trade negotiations), were designed to protect domestic industries but have faced increasing criticism for driving up prices and impacting affordability. The report from the FT raised concerns about potential concessions, particularly given the administration's ongoing trade negotiations with various countries. However, Peter Navarro, a key advisor on trade issues, dismissed the FT’s claims as “fake news,” emphasizing that no changes were being considered. This situation highlights the delicate balance between protectionist policies and global trade relations. For investors in metals and mining sectors, the uncertainty surrounding tariffs creates volatility. If the administration does soften its stance, it could lead to shifts in market dynamics, affecting both domestic production costs and international trade agreements. Conversely, maintaining the current policy could further strain consumer prices and diplomatic ties. The outcome of this review will have significant implications for industries reliant on steel and aluminum, as well as broader economic stability. Understanding the potential impact on tariffs is crucial for readers following financial markets, as it directly influences stock performance and global trade relations. The metals sector’s fluctuations

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Originally published on MarketWatch on 2/13/2026