The rally in steel and aluminum stocks may just be getting underway.

The tariffs — 25% on imports of steel and 10% on aluminum — take effect at midnight Friday. They are expected to lead to retaliation from European nations, says National Public Radio. Likely targets are thought to be U.S. exports of jeans, motorcycles and bourbon.

As we speak, shares of U.S. Steel (X), AK Steel Holding (AKS), Century Aluminum (CENX), Nucor (NUE) and Steel Dynamics (STLD) are seeing wins after President Trump moved ahead with tariffs on aluminum and steel imports from Canada, Mexico and the European Union.

Of the bunch, we like NUE the most here.

In fact, in its last earnings call, the company said that earnings should significantly increase in the second quarter based on tariff concerns.  Adding Europe to the list of places that’ll see tariffs would only serve as a bigger catalyst for the stock.

While plans can always change, we’d recommend buying shares of NUE at market prices at this time with a stop loss of -25%.  Also, consider buying to open the NUE July 20, 2018 65 calls at market.  Use a -35% mental stop on the calls.