Shares of steel companies are moving lower in Tuesday’s after-hours session following reports the U.S. and Mexico are nearing a deal that would remove the Trump Administration’s tariffs on steel imports.

What To Know: The U.S. and Mexico could soon announce an agreement that would see President Donald Trump’s 50% tariffs on steel imports removed up to a specified amount based on historical trade volumes, Bloomberg reported on Tuesday.

People familiar with the matter reportedly said Commerce Secretary Howard Lutnick is leading talks on the potential deal, which would still need to be approved by Trump. Trump negotiated a similar deal during his first term. This time around, the cap on tariff-free trade would reportedly be higher.

The news comes after Trump announced at the end of May that he would raise steel tariffs from 25% to 50% in an effort to protect the U.S. steel industry.

"Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers," Trump said in a post on Truth Social last month.

Several steel stocks were trading lower in Tuesday’s after-hours session following the news, led by Cleveland-Cliffs Inc ( CLF ) , which was down 7.86% at last check. Nucor Corp ( NUE ) shares were down about 5.76% and shares of Steel Dynamics Inc ( STLD ) were sliding about 2.85% at the time of publication, per Benzinga Pro. United States Steel Corp ( X ) , which is expected to be acquired by Japan’s Nippon Steel Corp, was down about 0.20%.

Bloomberg reported that the U.S. imported about 3.2 million metric tons of steel from Mexico in 2024.

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