11:08 AM EDT, 10/28/2025 (MT Newswires) -- Nucor ( NUE ) and other domestic steelmakers are benefitting from the 50% tariffs on steel, which are weighing on steel imports into the US, Morgan Stanley said in a note Tuesday, following Nucor's ( NUE ) Q3 results late Monday.

The tariffs have "protected the domestic steel industry by burdening importers' ability to sell material into the US market and, in doing so, allowing local producers to capture increased market share in a muted demand environment," the note said.

The 50% tariffs were implemented in May, with only the UK having a deal to the negotiate the rate down to 25%, although Canada and Mexico might follow, the note said.

Canada and Mexico have accounted for 30% to 40% of US steel imports since 2020, the note said.

The investment firm said it sees some "downside risks" to Nucor ( NUE ) due the "persistently muted demand and potential trade deals with Canada/Mexico."

"Demand, particularly on the flat side, has remained relatively soft throughout the summer as inventory overhangs drag on mills ability to push price," the note said.

Morgan Stanley lifted Nucor's ( NUE ) price target to $165 from $152, while keeping the company's overweight rating.

Price: 153.45, Change: +9.29, Percent Change: +6.44