Cleveland-Cliffs Inc. (CLF), a major U.S. steel producer, saw its stock soar 5.49% in pre-market trading on Tuesday, February 11, 2025. This significant surge was driven by President Trump's announcement of imposing a hefty 25% tariff on steel imports into the country.

The new protectionist trade policy by the Trump administration aims to provide relief to domestic steel manufacturers by curbing competition from cheaper foreign steel. As an integrated low-cost steel producer, Cleveland-Cliffs is well-positioned to benefit from this move:

• Reduced competition from imported steel is expected to boost pricing power and profit margins for domestic players like Cleveland-Cliffs.
• Analysts anticipate the new tariffs will allow Cleveland-Cliffs and other U.S. steelmakers to raise prices by 4-6%, capitalizing on the more favorable market conditions.
• Shares of other major steel companies like Nucor, Steel Dynamics, and U.S. Steel also rallied on the tariff announcement, reflecting investor optimism about the industry's prospects.

While the steel tariffs have drawn criticism from free trade advocates, the move has been welcomed by the domestic steel industry that has long advocated for such protectionist measures. As the new tariffs take effect, investors will closely watch how Cleveland-Cliffs and peers leverage the opportunity to solidify their market position and drive profitability.