Steel Stocks Soar as Trump Doubles Tariffs on Imports, Cleveland-Cliffs Leads with 22% Gain

U.S. steel stocks rallied sharply on Monday after former President Donald Trump announced a doubling of tariffs on steel imports, sending a strong signal of renewed protectionist trade policy ahead of the 2025 election season.

The announcement, made during a Friday evening campaign rally in Pennsylvania, stated that tariffs on imported steel would rise from 25% to 50%, aiming to fortify domestic production and bolster American manufacturers in the face of foreign competition.

“We are going to be imposing a 25% increase,” Trump declared during the rally. “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.”

The market responded swiftly. Cleveland-Cliffs Inc., one of the largest vertically integrated steel producers in the U.S., saw its shares jump more than 22% following the news. Steel Dynamics rose over 13%, while Nucor Corporation gained more than 12%. The broader VanEck Steel ETF (SLX), which tracks major players in the steel sector, climbed over 3%.

The move sent a ripple effect across global markets and reignited trade tensions with key international partners, particularly in Europe. In a strongly worded statement, the European Union criticized the announcement, stating it “undermines ongoing efforts to reach a negotiated solution” on global steel overcapacity and that the EU “is prepared to impose countermeasures.”

The tariff hike comes amid renewed efforts by Trump to reassert his economic agenda, especially around American manufacturing and resource independence. During the rally, Trump also referenced a “blockbuster agreement” involving U.S. Steel and Japan’s Nippon Steel, promising the deal would strengthen American control over the company while avoiding job losses.

Although Trump did not refer to the partnership as a formal merger, he claimed the collaboration would create at least 70,000 jobs and keep U.S. Steel operations under domestic influence. “U.S. Steel will be controlled by the USA,” Trump told the crowd. “There will be no layoffs. It’s a partnership to grow jobs and build America’s industrial strength.”

Analysts say the tariff increase could provide short-term pricing power and margin boosts for U.S.-based steelmakers, but warn of longer-term consequences. “Protectionist policies like these often trigger retaliatory actions, raising costs for downstream industries such as automotive and construction,” noted Daniel Granger, a commodities analyst at New York-based Harding & West.

Investors, however, appear bullish in the short term. The sharp movement in steel stocks reflects both optimism over increased domestic demand and anticipation of sustained political support for heavy industry.

As Trump continues to campaign on economic nationalism and industrial revitalization, the latest tariff hike serves as a clear signal of his intent to double down on a cornerstone of his first administration — defending U.S. manufacturing through aggressive trade policy.

The global steel market, meanwhile, braces for the potential fallout as international trading partners weigh responses to Washington’s hardline approach.