Feb 10 (Reuters) - Shares of U.S. steel and aluminum producers surged in premarket trading on Monday, while their counterparts in Europe fell after President Donald Trump disclosed plans to impose an additional 25% tariffs on import of the metals.
Nucor (NUE.N), U.S. Steel (X.N), and Cleveland-Cliffs (CLF.N), rose between 6% and 10% in premarket trading on Monday, while Century Aluminum (CENX.O), added 8.5% and Alcoa (AA.N), 5%.
American steelmakers have been grappling with subdued demand as an influx of cheaper imports force them to cut prices and leave their mills idle.
Trump said he would unveil the new tariffs on Monday. Roughly a quarter of all steel used in the U.S. is imported, the bulk of it from neighboring Mexico and Canada or close allies in Asia and Europe, such as Japan, South Korea and Germany.
"Tariffs do concern me going into our busy season that they will cause delays and higher prices from our domestic sources," said Todd Miller, president at Isaiah Industries, a manufacturer of metal roofing.
Meanwhile, shares of European peers ArcelorMittal (MT.LU), and Voestalpine (VOES.VI), slipped between 1.3% to 2.5%. Germany's Thyssenkrupp (TKAG.DE), and Salzgitter (SZGG.DE), were both trading flat.
"The proposed tariff would add nearly 30 cents/lb in duty at current aluminum prices, not including transportation and other costs," J.P.Morgan analysts said in a client note on Monday.
The metal is widely used in the aerospace sector, which has been grappling with its own supply chain challenges.
Steel and aluminium are Trump's latest targets.
Thyssenkrupp, Germany's largest steelmaker, said Europe was its main market for steel and that most of its U.S. business consisted of materials trading and automotive parts, areas where the conglomerate said it has a significant local footprint.
"The major structural challenges that already exist in the German steel sector could be exacerbated by tariffs," DZ Bank analysts said.
Peers in Asia also fell with India's Tata Steel (TISC.NS), and JSW Steel (JSTL.NS), down 3.2% and 2.3%, respectively.
Trump during his first term had imposed tariffs of 25% on steel and 10% on aluminum, but later granted several trading partners duty-free exemptions, including Canada, Mexico and Brazil.
Reporting by Christoph Steitz, Paolo Laudani, Isabel Demetz, Medha Singh, Shivansh Tiwary and Aatreyee Dasgupta; Editing by Rachel More, David Goodman and Arun Koyyur
