The latest rumours on the market have shaken Business Square: Actions Prysmian they collapse, while Tenaris seems to be finding new life. Everything revolves around a possible President Donald Trump's backtracking on US tariffs on steel and aluminum, a piece of news that at first glance might seem positive for everyone, but which in reality has very different effects depending on the business of the individual companies.
The market of the industrial metals is affected: the three-month benchmark contract of thealuminum, traded on the London Metal Exchange, fell 2,2% to $3.029 a tonne, its lowest level since February 6, while steel coils US Steel Coil fell 1,63% to $965 on the Chicago Nymex. According to ING analysts, the prospect of a revised aluminum tariff regime adds further uncertainty to trade flows and prices, while risk aversion and profit-taking continue to dampen the rally seen at the beginning of the year.
Why Trump is considering reducing tariffs on aluminum and steel
The decision to review tariffs is primarily political. The US administration is considering easing some taxes introduced last summer, which they reached up to 50% and covered over 400 products, from metal pipes to wind turbines, from household appliances to rail cars. According to the Financial Times, some exemptions could concern goods for which tariffs are excessively burdening consumers. In fact, many analysts and citizens perceive tariffs as a sort of "tax on Americans”: a study of the New York Federal Reserve estimated that in 2025, approximately 90% of the cost of tariffs would be borne directly by businesses and households. Everyday products such as cakes, canned food, and beverages have seen significant increases, fueling discontent. According to a survey Reuters / Ipsos, only 30% of Americans approve of Trump's handling of the cost of living, while 59% disapprove, including about one in five Republicans.
Despite this, the president has repeatedly emphasized that the revenues from tariffs serve to reduce the national debt and has considered allocating part of these proceeds to public payments. In recent months, however, Trump has already withdrawn some of the most severe tariffs and sought a trade truce with China, precisely to mitigate the growing pressures policies internalA clear signal also comes from Congress: some Republicans in the House joined Democrats in voting against the tariffs imposed on Canada, demonstrating growing dissent within the party.
With the elections mid-term elections of November 2026 On the horizon, easing tariffs could therefore become a strategic tool to calm voters' concerns and reduce discontent related to the cost of living.
Prysmian's stock market plunges as US tariff cuts put pressure on margins.
Prysmian shares immediately felt the effects of the rumours, falling over 8% on the Ftse Mib and slipping to the bottom of the price list. At first glance, the news might seem positive: the Italian company, a world leader in the production of electrical cables, telecommunications, and energy solutions, uses large quantities of copper and aluminum, the price of which significantly impacts its business.
However, Prysmian is heavily exposed to the US market, an exposure that will grow further after theacquisition of the American Encore Wirand, specialized in electrical cables and wires. The possible reduction of duties opens the door to a more competition on the US market, reducing the competitive advantages acquired thanks to the tariffs.
Analysts Intermonte They point out that Prysmian would have benefited from the aluminium tariffs in 2026 through a increase in market share and marginiAs these benefits decline, they reduce, increasing pressure on revenues. Citigroup He notes that “if tariffs on aluminum wire were eliminated, while those on raw materials remained in place, this could benefit foreign competitors, thanks to access to cheaper raw materials.”
Despite the stock market crash, the company continues to move on other strategic fronts. The Italian giant has in fact signed a contract worth up to 550 million euros with Enedis, to provide the full range of medium voltage cables required for the modernization of the French electricity gridThe agreement, valid for seven years with an option for three additional years, strengthens the company's position in the global energy infrastructure sector.
Tenaris rises on the Milan Stock Exchange amid speculation about lower tariffs: here's why
In reverse, Tenaris reacted positively (+2,04%). Two main factors support the stock: the reduction of the pressure on Costs and the lower impact of duties on strategic countries for the group, such as Mexico, one of the main production centers.
Tenaris, a global manufacturer and supplier of pipes and services for oil and gas exploration and production, also produces Octg (Oil Country Tubular Goods), which are crucial for US oil companies. As analysts at Seeking Alpha point out, "the reduction in tariffs, if confirmed, could have a positive impact on the group's costs, as it generates a significant portion of its sales in the US."
In its third quarter results, Tenaris had already reported that following the increase in tariffs from 25% to 50%, OCTG imports into the US were decreasing, but inventories remained high and prices did not yet reflect the increased costs linked to the tariffs.
Aluminum and steel, US tariffs are lighter: who loses?
Meanwhile, other companies in the sector have also recorded falls on the stock market: among these the French Rexel (-5%) And Nexans(-3,4%), the Danish nkt (-4,4%) and the Japanese Fujikura (-4%), all active in the production or distribution of cables and electrical solutions. Similar pressures have hit metal producers such as the American Cleveland Cliffs, the Japanese Nippon Steel e Furukawa electric, the Indian Tata Steel, the American Steel Dynamics, the German ThyssenKrupp and Norwegian Norwegian HydroIn this case, the decline is due to two main reasons: for some companies the effect comes directly from theexposure to the US market, which will lose competitive advantages with the reduction of duties; for others, however, the collapse reflects the weakening of prices global steel and aluminum
