CLF, STLD, NUE, X: Steel Stocks In Focus After Trump Hikes Tariffs To 50%, Retail’s Bullish

Steelmakers’ stocks are set to garner retail attention on Monday after President Donald Trump doubled import tariffs on steel and aluminum products to 50%.

Steel Dynamics (STLD) and Nucor (NUE) jumped 11.5% and 14%, and Cleveland-Cliffs surged 33% in extended trading on Friday after Donald Trump announced the fresh tariffs at a rally in Pennsylvania.

"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," Trump said at the event about Nippon Steel’s “planned partnership” with U.S. Steel (X).

The Trump administration views the steel industry as critical to national security interests. The initial 25% tariffs were among his first levies imposed during the second term.  

Trump said in a post on Truth Social that tariffs, alongside the Nippon-U.S. Steel deal, will help protect American jobs. The industry employs thousands of people in the electorally significant state of Pennsylvania.

However, the tariffs heightened the risks of a further escalation in the global trade war. Several countries, including the U.S. allies, criticized the raise amid ongoing trade deal negotiations.
 
"This decision adds further uncertainty to the global economy and increases costs for consumers and businesses on both sides of the Atlantic," a European Commission spokesperson said to Reuters. The EU also threatened counter tariffs on U.S. products.

Retail sentiment about the steelmakers ranged between ‘bullish' and ‘extremely bullish,’ amid high message volume.

“Can’t honestly see the bear case with Trump eliminating the foreign competition,” one retail trader said about Cliffs.

“It doesn't eliminate foreign competition. It just makes pricing more competitive,” a bearish trader replied.

Steel Dynamics has gained 7% this year, while Nucor and Cleveland Cliffs shares have fallen 7.2% and 39%, respectively.

Also See: Boeing CEO Says ‘Market Is Not Ready’ For 737 Max Successor Amid Talks With Trump On Tariffs Fallout

For updates and corrections, email newsroom[at]stocktwits[dot]com.