2 Ways to Trade Trump's Steel Tariffs - 2/12

By now, you know President Trump just imposed a 25% tariff on steel and aluminum imports.

In fact, according to CBS News, the President said, “Our nation requires steel and aluminum to be made in America, not in foreign lands we need to create in order to protect our country's future resurgence of U.S. manufacturing and production, the likes of which has not been seen for many decades.”

“Under Mr. Trump's orders, steel imports from all countries will now face 25% tariffs, while aluminum tariffs will be raised from 10% to 25%. The orders were instituted under Section 232 of the Trade Expansion Act of 1962, which authorizes the president to adjust imports, including by imposing tariffs, when they are determined to threaten national security.”

That being said, it’s no surprise that steel stocks and related ETFs have been rallying. Keep reading for two top steel opportunities...

ETF: VanEck Vectors Steel ETF (SYM: SLX)

The SLX ETF is also gaining big momentum on the news. After finding strong support at around $58, the ETF is now up to $63.42. From here, we’d like to see it initially retest $70.

With an expense ratio of 0.56%, the SLX ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Steel Index (STEEL), which is intended to track the overall performance of companies involved in the steel sector. Some of its 26 holdings include Rio Tinto, Vale, Nucor, Steel Dynamics, United States Steel, Reliance Steel & Aluminum and Ternium to name just a few.