U.S.-Canada Trade Collapse: Steel & Aluminum Capital Loses $15 Billion

The collapse of U.S.-Canada trade talks has triggered a $15 billion capital loss in the U.S. steel and aluminum sectors. Companies like Nucor, Steel Dynamics, and Cleveland-Cliffs had positioned themselves to avoid Canada's 50% tariffs on U.S. goods, but the breakdown of last-minute negotiations sent their stocks tumbling by over 10%. Century Aluminum now trades near its 2026 lows, while Alcoa gained 3% due to its Canadian production facilities. The new 50% tariffs on $20 billion worth of Canadian goods, including liquor and hockey gear, will further strain global steel and aluminum markets.

The U.S. tariffs on Canada will disrupt global trade balance and negatively impact capital flows. This development could force a reevaluation of the U.S.'s trade policies on the global trade order.