Steel Dynamics Soars 13.68% on Trump-Era Tariffs

Steel Dynamics surged 13.68% in pre-market trading on June 2, 2025, reflecting a significant shift in investor sentiment driven by the resurgence of Trump-era steel tariffs.

The reinstatement of Section 232 steel tariffs at 25% by the U.S. Department of Commerce has reshaped global trade dynamics, creating both risks and opportunities for investors. This move, legally upheld after a temporary stay by federal courts, is expected to benefit domestic steelmakers like Steel Dynamics, with projected revenue jumps of 15-20% within six months.

The automotive and construction sectors are particularly affected by these tariffs. Automotive producers face increased costs per vehicle, with EV battery enclosures seeing a 15% spike in production costs. Meanwhile, single-family home costs have risen by $15,000, and infrastructure projects face 8-12% cost inflation. These pressures are translating into profit gains for firms with domestic supply chains, including Steel Dynamics.

While the EU and China have retaliated with tariffs of their own, this volatility is creating asymmetric opportunities. For example, China's shift to high-tech exports and Japan's export controls on rare earth metals are pushing automakers to seek U.S. suppliers, further benefiting domestic steel producers.