Trump’s Tariff Announcement Boosts Steelmaker Stocks

⁣ Updated June 02, 2025

Shares of several U.S. steel producers, including Steel Dynamics, Commercial Metals, and Nucor, jumped in premarket trading ‍Monday after former President Donald Trump suggested ⁣he would double existing tariffs on steel imports, perhaps impacting the steel market.

Cleveland-Cliffs saw the most significant premarket surge, with shares climbing 24%. Steel Dynamics and Nucor followed, rising approximately 11% each, while Commercial Metals experienced an 8% increase.

Trump’s announcement, made at a U.S. ⁣Steel facility in Pennsylvania, underscored his support for a partnership between U.S. Steel and Nippon Steel. This ⁢follows the Biden management’s rejection of Nippon ‍Steel’s proposed⁤ acquisition due to national security concerns. While U.S.Steel shares had previously rallied on news of Trump’s support, they remained relatively stable Monday ⁤morning.

The former president argued that increased steel tariffs would safeguard American jobs and encourage domestic sourcing. However, research indicates that ⁤while previous ⁤tariffs did create jobs in⁤ the steel and aluminum industries, the resulting⁢ higher metal costs led to slower hiring in other sectors, offsetting the manufacturing gains.

The ‍United‍ States imports nearly ⁤25% of its steel annually. according to the American Iron and Steel ⁢Institute, the U.S. imported just under 29 million net tons of raw and finished steel in 2024, with canada, Brazil, and Mexico among the leading exporters.

What’s next

The market will⁢ closely watch how ⁤the Biden ⁤administration responds to Trump’s tariff proposal and how⁢ thes policy shifts could affect the competitive landscape⁤ for steel production and steel prices.