Cleveland-Cliffs Inc. Experiences Surge Amid Steel Tariff Increase

Cleveland-Cliffs Inc., a leading materials company specializing in steel production, has seen a significant surge in its stock price following a recent announcement by U.S. President Donald Trump. On June 1, 2025, Trump announced a doubling of steel tariffs to 50%, a move that has sparked a rally in the steel industry, particularly benefiting Cleveland-Cliffs.

Stock Performance and Market Reaction

The announcement led to a dramatic 25% increase in Cleveland-Cliffs’ stock price, as reported by multiple financial news sources. The company’s shares, listed on the New York Stock Exchange, closed at $5.83 on May 29, 2025, but have since experienced a notable rally. This surge is part of a broader trend in the steel sector, with other steel-related stocks also experiencing significant gains.

Impact of Tariff Changes

The tariff increase has been a catalyst for investor optimism, with expectations of higher profit margins for domestic steel producers like Cleveland-Cliffs. The company, headquartered in Cleveland, Ohio, is a major player in the production of custom-made pellets, hot briquetted iron (HBI), and various steel products, including flat-rolled carbon steel and stainless steel.

Market Context

The steel tariff announcement came amidst ongoing trade tensions between the U.S. and China, as well as the EU, which have contributed to market volatility. Despite these tensions, the immediate impact on Cleveland-Cliffs has been positive, with investors betting on the company’s ability to capitalize on the protective measures.

Financial Overview

As of the latest data, Cleveland-Cliffs has a market capitalization of $3.45 billion. The company’s price-to-earnings ratio stands at -3.11, reflecting the challenges in the industry and the impact of recent market dynamics. Despite these challenges, the tariff increase has provided a much-needed boost to the company’s stock performance.

Conclusion

Cleveland-Cliffs Inc. has emerged as a key beneficiary of the recent steel tariff increase, with its stock price experiencing a significant rally. The company’s strategic position in the steel industry, combined with the protective measures introduced by the U.S. government, has fueled investor confidence and set the stage for potential growth in the coming months.