Cleveland Cliffs' stock surged 25% due to higher steel tariffs, giving domestic producers competitive edge.

From Yahoo Finance: 2025-06-23 11:25:00

Cleveland-Cliffs Inc. (NYSE: CLF) saw its stock price soar on June 2, 2025, after President Trump announced a doubling of tariffs on foreign steel to 50%. The company’s shares surged around 25% in premarket trading, a significant turnaround for a stock that had struggled over the past year.

The surge in Cleveland-Cliffs’ stock was fueled by the news of higher tariffs making imported steel more expensive, giving domestic producers like Cliffs a competitive edge. The tariff increase is set to go into effect on June 4 and is expected to impact Canada the most, as it is the largest steel exporter to the US.

Retail investors jumped in, betting on the tariff boost to enhance Cliffs’ margins and revive its fortunes. The rally also lifted shares of competitors like U.S. Steel and Nucor. While CLF presents investment potential, some believe that certain AI stocks offer greater promise for higher returns with limited downside risk.

Read more: Cleveland Cliffs Surged 25% in Early June on the Back of Steel Tariffs