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

Cleveland-Cliffs Inc. (NYSE: CLF) lit up Wall Street on June 2, 2025, as news of steep new tariffs on imported steel sent its stock price soaring. President Trump’s announcement to double tariffs on foreign steel to 50% sparked a frenzy among investors.

“We are going to be imposing a 25% increase. We’re going to bring it from 25% to 50% — the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States.”

POTUS on May 30 at Pennsylvania rally

Cleveland-Cliffs, a heavyweight in the U.S. steel sector, saw its shares surge around 25% in premarket trading. It’s a dramatic reversal for a stock that had struggled over the past year, being down 66% over the period of time.

A steel coil being loaded into a facility for further processing and distribution.

The reason for the surge was clear: higher tariffs mean imported steel becomes more expensive, and would give domestic producers like Cleveland-Cliffs the edge they need. The tariff announcement will go into effect on June 4, and is expected to hurt Canada the most since it’s the largest steel exporter to the US.

Retail investors piled in, betting that the tariff boost could fatten Cliffs’ margins and revive its fortunes. The rally also lifted shares of rivals like U.S. Steel and Nucor.

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Disclosure: None.