Shares in European metals companies with American footprints rose after trade talks between the U.S. and Canada broke down Friday, insulating the groups' U.S. operations from Canadian competition.

Swedish steel producer SSAB jumped 3.4% in afternoon European trade, while Norwegian aluminum manufacturer Norsk Hydro's shares rose 1.6%.

Monday's gains reverse some losses suffered by the companies last week. SSAB shares fell 9% and Norsk Hydro dropped 2.9% Thursday, amid positive signals from U.S. and Canadian trade representatives that a deal was close.

Canadian leader Mark Carney said the U.S. and Canada were in a trade war Friday. Carney pulled his country out of a deal that would have reduced U.S. tariffs, accusing the U.S. of making unacceptable demands and doubling down on retaliatory duties.

Lower U.S. steel tariffs on Canadian imports would be slightly negative for SSAB, Jefferies analysts wrote in a note to clients. Lower tariffs would expose the group's Alabama and Iowa steel mills to competition from Canada-based Algoma, they said.

U.S. tariffs on Canadian aluminum created a premium on aluminum products in the U.S. Midwest, where Norsk Hydro operates several manufacturing and recycling facilities, RBC Europe analysts Marina Calero and Laura Chan said last week, before the breakdown in talks.

A reduction in tariffs on Canadian imports could lower the premium on Midwestern aluminum by $300 a metric ton, the analysts said, and would also hurt margins on products containing recycled metals. As a result, a reduction in tariffs could cost Norsk Hydro around 400 million Norwegian kroner ($43 million), they said--a cost the company won't incur as long as tariffs stay in place.