## [# New Tariff Threat Boosts Steel, Aluminum ETFs](/sections/news/new-tariff-threat-boosts-steel-aluminum-etfs)
# New Tariff Threat Boosts Steel, Aluminum ETFs
President Trump threatened increased tariffs of steel and aluminum imports from Canada, boosting ETFs with large allocations to American steel and aluminum manufacturers.
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[By Kristin Myers](/authors/kristin-myers)
Mar 11, 2025
Edited by: David Tony
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President Trump threatened increased tariffs of steel and aluminum imports from Canada, boosting exchange-traded funds with large allocations to American steel and aluminum manufacturers.
In a statement posted to social media Tuesday morning, the president wrote: "Based on Ontario, Canada, placing a 25% Tariff on 'Electricity' coming into the U.S., I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA..."
The [**VanEck Steel ETF (SLX)**](/SLX), a pure steel ETF, initially pared gains, slipping into the red during intraday trading before marching upward. By Tuesday's close, SLX had jumped over 1.3%.
The [**SPDR S&P Metals & Mining ETF (XME)**](/XME) soared, rising over 3% as it was boosted by [jumps in American steel and aluminum stocks](/sections/news/tariffs-lift-steel-aluminum-etfs). [United States Steel Corp. (X)](/stock/X) rose by over 5%. The stock is in the top-10 holdings for both funds.
## ETFs React to New Tariff Threat
Despite the jumps, the move wasn't widely celebrated across the market as Trump threatened to further extend his tariffs. In his note, Trump added: "If other egregious, long time Tariffs are not likewise dropped by Canada, I will substantially increase, on April 2nd, the Tariffs on Cars coming into the U.S. which will, essentially, permanently shut down the automobile manufacturing business in Canada. Those cars can easily be made in the USA!"
The [**Industrial Select Sector SPDR Fund (XLI)**](/XLI) spent Tuesday on a rollercoaster ride in the red, dropping as much as 1.7%.
[](/XLI)*Source: etf.com*
The [**iShares U.S. Manufacturing ETF (MADE)**](https://MADE) and the [**Vanguard Industrials ETF (VIS)**](/VIS) dropped by 0.8% and 1.2%, respectively, at the close, weighed down by manufacturing companies whose production costs will rise from tariffs levied on Canadian imports of steel and aluminum.
Broad market funds also took a leg lower.
The [**SPDR S&P 500 ETF Trust (SPY)**](/SPY) sank by nearly 1.5% before paring losses and jumping briefly into the green. The [**SPDR Dow Jones Industrial Average ETF Trust (DIA)**](/DIA) also tried to claw back some gains but stayed in the red into the market close.
[](/SPY)*Source: etf.com*
Trump's tariffs have caused markets to whipsaw in the past weeks, reversing gains made by broad market ETFs in 2024. The [**Vanguard S&P 500 ETF (VOO)**](/VOO) has dropped over 9% since mid-February as the trade war has escalated. Currently, the S&P 500 is flirting with correction territory, characterized by a 10% drop or more from a recent high.
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[ Kristin Myers SVP Content/EIC ](/authors/kristin-myers)
Kristin Myers is an award-winning journalist, who covers business and finance news. She is the current Senior Vice President of Content and Editor in… [View Bio](/authors/kristin-myers)
Related Topics [Industrials](http://www.etf.com/topics/industrials)
[Steel](http://www.etf.com/topics/steel)
[Aluminum](http://www.etf.com/topics/aluminum)