Cleveland-Cliffs Inc. (NYSE: CLF) saw its shares surge by 25% before noon on Monday after former President Donald Trump announced a dramatic tariff hike on imported steel and aluminum. The new policy, unveiled late Friday, would double existing tariffs from 25% to 50%, aimed at protecting U.S. metal producers from foreign competition.
The market reaction was swift. Investors poured into domestic steel stocks like Cleveland-Cliffs, anticipating stronger margins and increased demand for U.S.-sourced metals. The move sent a bullish signal across the steel sector, with other major producers like Nucor and Steel Dynamics also experiencing gains.
But the enthusiasm on Wall Street was met with concern from economists and consumer advocates. Higher tariffs on industrial metals are likely to ripple through the economy, raising production costs for cars, appliances, canned goods, and other products that rely on steel or aluminum. Some experts warn the impact could extend as far as grocery prices, especially for packaged foods.
As markets weigh the long-term consequences, Cleveland-Cliffs finds itself in the spotlight — a key beneficiary of a policy shift that could have wide-reaching effects on consumers and manufacturers alike.
