In this article, we will examine the Top 6 Steel Stocks to Buy Amid US Tariffs.
Steel prices have been on an upward trajectory in response to supply cuts and, most importantly, due to tariffs imposed by President Donald Trump. The President’s hiking steel import tariffs from 25% to 50% has only put pressure on an industry that is already struggling with supply issues.
Trump has imposed tariffs on steel imports into the US in a bid to boost domestic manufacturing.
“We’re going to bring it from 25 percent to 50 percent, the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States,” Trump told the crowd. “Nobody’s going to get around that.”
The NYSE American Steel Index shows that steel prices have increased by 22% year to date amid the weight of tariffs and uncertainty. Amid the price spike US steel stocks have posted significant gains since Trump implemented protectionist measures to support domestic manufacturing.
Given that steel prices were already higher in the US, the tariffs have only put more pressure on triggering reduced imports into the US, where demand remains high.
“This was an absolute surprise. Already steel prices in the US are higher than anywhere else, and it is a net importer which needs to have volumes coming in. All this does is raise prices there,” Josh Spoores, head of steel Americas analysis at CRU.
Steel demand is expected to continue rising as manufacturers in Europe keep building steel-intensive products at home and exporting them to the US to fetch higher prices. Cars, construction products, and appliances are among the products likely to feel the impact of steel tariffs.
Given that the long-term outlook remains positive amid the continued spike in steel prices and demand, let’s look at some of the top steel stocks to buy amid US tariffs.
Our Methodology
To compile the list of the top steel stocks to buy amid US tariffs, we used Finviz to screen for companies that produce and supply steel and its products. We settled on companies with positive year-to-date gains (as of October 24) and that were popular among elite hedge funds, as of Q2 2025. Finally, we ranked the stocks in ascending order based on the number of hedge fund holders, as reported by Insider Monkey’s Q2 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Top Steel Stocks to Buy Amid US Tariffs
6. ArcelorMittal S.A. (NYSE:MT)
Year to Date Returns: 70.17%
Number of Hedge Fund Holders: 18
ArcelorMittal SA (NYSE:MT) is one of the top steel stocks to buy amid US tariffs. The stock has been on an impressive run, with a 66% year-to-date gain. Analysts at Goldman Sachs downgraded ArcelorMittal SA (NYSE:MT) to ‘Neutral’ from ‘Buy’ on October 10.
The downgrade came amid confidence that the stock remains fully valued at current levels after an impressive year-to-date rally. The stock has gained 54.8% since Goldman Sachs added it to its Buy list, benefiting from a spike in steel prices amid US tariffs. Goldman Sachs expects capacity cuts in China to bolster steel prices, which should enhance the company’s prospects.
Similarly, raw material deflation has bolstered the company’s margins. In addition, safeguards in key markets, such as Europe and India, are expected to strengthen stock sentiment further. Likewise, the investment bank has warned that high energy costs could limit further gains.
While the risk-reward for ArcelorMittal remains balanced at current levels, Goldman Sachs expects the company to benefit from sustained cost tailwinds and effective EU policy change. The EU has proposed reducing tariff-free import volumes by 47% to 18.3 million tons.
ArcelorMittal SA (NYSE:MT) is a leading steel and mining company that produces and sells steel products for industries like automotive, construction, and household appliances. The company is also involved in mining iron ore and metallurgical coal to supply its steelmaking operations, and it focuses on developing innovative, sustainable, and lower-carbon steel solutions.
5. Commercial Metals Company (NYSE:CMC)
Year-to-Date Returns: 23.85%
Number of Hedge Fund Holders: 32
Commercial Metals Company (NYSE:CMC) is one of the top steel stocks to buy amid US tariffs. On October 15, the company’s board of directors affirmed its commitment to shareholder value. The board approved a quarterly cash dividend of $0.18 a share.
The dividend is to be paid on November 13 to shareholders of record as of the close of business on October 30. The company has paid dividends for 224 consecutive quarters. Supporting the impressive track record is earnings growth.
On October 16, the company delivered impressive fourth-quarter results, with earnings increasing to $151.78 million, or $1.35 a share, compared to $103.93 million, or $0.90 a share, in the same quarter last year. Revenue in the quarter was up 5.9% to $2.11 billion.
Commercial Metals Company (NYSE:CMC) is a global company that recycles and manufactures steel products for the construction industry and other markets such as manufacturing, energy, and agriculture. The company is known for its vertically integrated model, which combines scrap metal recycling with steel production and fabrication.
4. Reliance Steel & Aluminum Co. (NYSE:RS)
Year to Date Returns: 2.67%
Number of Hedge Fund Holders: 35
Reliance Steel & Aluminum Co. (NYSE:RS) is one of the top steel stocks to buy amid US tariffs. On October 13, JPMorgan reiterated an ‘Overweight’ rating on the stock and cut the price target to $345 from $350. The price target cut comes as the investment bank continues to observe market developments.
JPMorgan’s Overweight rating is buoyed by the company’s growth prospects and long-term outlook. Reliance Steel & Aluminum Co. (NYSE:RS) has already reiterated its focus on strategic acquisition opportunities and macroeconomic uncertainties. Its ability to navigate tariff uncertainties and capitalize on market opportunities also underscores its long-term outlook.
“We continue to see new acquisition opportunities despite continuing macroeconomic uncertainty and we will maintain our focus on pursuing opportunities that expand our geographic footprint and the value added metal processing solutions we offer our customers, align with our emphasis on smart profitable growth and complement our strong gross profit margin profile,” said Carla Lewis, President and Chief Executive Officer.
Reliance Steel & Aluminum Co. (NYSE:RS) processes and distributes a wide range of steel products and other metals, making it the largest metals service center in North America. It provides value-added processing services, such as cutting and forming, manages metal inventories, and distributes over 100,000 different metal products to a diverse customer base across many industries.
3. Cleveland-Cliffs Inc. (NYSE:CLF)
Year-to-Date Returns: 36.90%
Number of Hedge Fund Holders: 42
Cleveland-Cliffs Inc. (NYSE:CLF) is one of the top steel stocks to buy amid US tariffs. On October 7, Cleveland-Cliffs Inc. (NYSE:CLF) announced the upsizing of an additional $275 million aggregate principal amount of senior unsecured notes due 2034.
The additional notes are part of the company’s 7.625% Senior Guaranteed Notes issued in the amount of $850 million. The issuance of the notes is part of the company’s bid to strengthen its financial position. It plans to use net proceeds from the offering to repay borrowings under its asset-based credit facility.
The company remains confident about the second half of the year amid a challenging macroenvironment. It’s also exploring potential non-core asset sales to raise much-needed funds to reduce its debt holdings. It’s also considering strategic options for foreign investment.
Cleveland-Cliffs Inc. (NYSE:CLF) is a leading North American steel producer that is vertically integrated, meaning it controls the entire production process from mining iron ore to making and processing steel, and includes downstream operations such as stamping, tooling, and tubing. The company is the largest supplier of steel to the automotive industry.
2. Steel Dynamics, Inc. (NASDAQ:STLD)
Year to Date Returns: 34.66%
Number of Hedge Fund Holders: 44
Steel Dynamics, Inc. (NASDAQ:STLD) is one of the top steel stocks to buy amid US tariffs. On October 20, Steel Dynamics (NASDAQ:STLD) reported robust third-quarter results with $4.8 billion in net sales, $404 million in net income ($2.74 EPS), and adjusted EBITDA of $664 million.
The company achieved record steel shipments of 3.6 million tons, generated $723 million in operating cash flow, and maintained liquidity above $2.2 billion. It also advanced aluminum product qualifications and produced its first biocarbon. Capital returns included $210 million in share buybacks and $74 million in dividends.
Despite strong sequential gains, operating income up 33% and EBITDA up 24% versus Q2, year-to-date performance showed pressure from lower steel prices and margins. Net income through September 30 fell to $920 million from $1.3 billion a year earlier, with operating income down 32%. Planned Q4 outages may reduce flat-rolled output by up to 85,000 tons. Key focus areas ahead include aluminum mill ramp-up, biocarbon scale-up, and trade impacts, with clearer signals expected by Q1 2026.
Steel Dynamics, Inc. (NASDAQ:STLD) is one of North America’s largest steel producers and metal recyclers, operating facilities across the U.S. and Mexico. The company uses a circular manufacturing model, relying on recycled scrap to produce high-quality, lower-emission steel products. In addition to its strong steel fabrication platform, Steel Dynamics is expanding into aluminum to diversify its offerings. While maintaining a focus on safety, efficiency, and integrity, the company continues to deliver value-added metal solutions for industrial, automotive, and packaging sectors.
1. Nucor Corp (NYSE:NUE)
Year to Date Returns: 20.94%
Number of Hedge Fund Holders: 47
Nucor Corp (NYSE:NUE) is one of the top steel stocks to buy amid US tariffs. On October 13, JPMorgan analyst Bill Peterson reiterated an ‘Overweight’ rating on Nucor Corp (NYSE:NUE) and raised the price target to $172 from $165.
The price target hike underscores growing confidence in the company’s year-to-date performance and its strong market position in the steel industry. Wells Fargo has echoed similar sentiments, rating the stock as an ‘Equalweight’ with a $145 price target. According to Wells Fargo, the company is well-positioned to benefit from near-term support for US steel prices.
Nucor Corporation has already inked a deal to supply The Nuclear Company NQ1-1 steel and related infrastructure for the sale of nuclear reactors. The strategic partnership aims to bolster the US national security by achieving energy independence.
Nucor Corp (NYSE:NUE) is a North American company that produces a wide range of steel and steel products, and is one of the largest recyclers of any material in the region. The company manufactures and markets merchant bar, rebar, structural steel, sheet steel, and engineered bar products used in industries such as construction, automotive, and energy. Nucor also produces raw materials, such as direct-reduced iron (DRI), and provides industrial gas supply services.
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