Key Takeaways
- Several U.S. steelmaker stocks surged in premarket trading Monday after President Trump said he would double tariffs on steel imports to 50%.
- Steel Dynamics, Commercial Metals, Nucor, and Cleveland-Cliffs shares were all sharply higher.
- The U.S. imports nearly a quarter of the steel it uses annually, bringing in just under 29 million net tons of finished and raw steel products in 2024.
Several U.S. steelmaker stocks surged in premarket trading Monday following President Donald Trump’s announcement that he plans to double tariffs on steel imports to 50%.
Cleveland-Cliffs (CLF) stock soared 24% an hour ahead of the opening bell, while shares of Steel Dynamics (STLD) and Nucor (NUE) were up roughly 11% and Commercial Metals (CMC) 8%.
Trump made the announcement at a U.S. Steel (X) facility in Pennsylvania on Friday, highlighting his recent support for a “partnership” between the American steelmaker and Nippon Steel after the Biden administration rejected the Japanese firm’s proposed acquisition over national security concerns. U.S. Steel shares had rallied since that announcement but were little changed Monday morning.
Trump said at Friday’s event that doubling the steel tariffs would protect U.S. jobs and lead more companies to source from American steelmakers. Research found that the 25% tariff placed on steel and aluminum imports in Trump’s first term did boost jobs in the industries, but higher metal costs led to slowed hiring in other sectors, far outweighing the boost to manufacturing hires.
The U.S. imports nearly a quarter of the steel it uses annually, bringing in just under 29 million net tons of finished and raw steel products in 2024 from Canada, Brazil, Mexico, and others, according to the American Iron and Steel Institute.
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