Cleveland-Cliffs Soars 27.44% on Trump's Tariff Hike

On June 2, 2025, Cleveland-Cliffs' stock surged by 27.44% in pre-market trading, driven by significant developments in the steel industry.

President Donald Trump announced plans to double tariffs on steel and aluminum imports to 50%, a move that has garnered significant attention from investors and industry stakeholders. This decision is expected to bolster the domestic steel industry, including major players like Cleveland-Cliffs, by increasing the cost of imported steel and aluminum, thereby making domestic production more competitive.

Trump's announcement has sparked a wave of optimism among steelmakers, with Cleveland-Cliffs being one of the key beneficiaries. The increased tariffs are anticipated to enhance the company's profitability by reducing competition from foreign imports, thereby securing a larger market share for domestic producers.

The tariff hike is part of a broader strategy by the Trump administration to support American manufacturing and protect jobs in the steel industry. This move is seen as a direct response to global trade practices that have been perceived as unfair, particularly from countries like China.

While the tariff increase is expected to benefit Cleveland-Cliffs, it also raises concerns about potential retaliatory measures from other countries and the broader impact on global trade relations. The steel industry, including Cleveland-Cliffs, will need to navigate these challenges while capitalizing on the opportunities presented by the new tariff structure.