Trump Doubles Steel Tariffs to 50%, Sending U.S. Steel Stocks Soaring

TLDR

Table of Contents

President Trump announced plans to double steel tariffs from 25% to 50% starting Wednesday at a Pennsylvania rally on Friday
Cleveland-Cliffs stock jumped 26% in premarket trading, while Steel Dynamics and Nucor rose 11-14%
The tariff increase aims to boost domestic steel production as the U.S. is a net importer of steel
Foreign steel companies like Nippon Steel and Posco saw their shares decline following the announcement
Trump also promoted a $14 billion deal between Nippon Steel and U.S. Steel at the same rally

President Donald Trump announced at a Pennsylvania rally on Friday that he plans to double steel tariffs from the current 25% to 50%, effective Wednesday. The move targets foreign steel imports and aims to strengthen the domestic steel industry.

BREAKING
Donald Trump just posted on his truth social account he’s raising tariffs on aluminum and steel from 25% to 50% effective June 4 pic.twitter.com/DEdYiMc9V3
— Marc Nixon (@MarcNixon24) May 30, 2025

Cleveland-Cliffs shares surged 26% to $7.30 in premarket trading on Monday following the announcement. Steel Dynamics and Nucor also posted strong gains of 11% and 14% respectively.

The tariff increase comes as U.S. steel companies have struggled over the past year. Cleveland-Cliffs shares had fallen 66% over the previous 12 months before Monday’s jump.

Steel Dynamics and Nucor had declined 7% and 34% respectively during the same period. The new tariffs could help these companies by raising domestic steel prices and improving profit margins.

Impact on Foreign Steel Companies

Foreign steel producers faced immediate market pressure following Trump’s announcement. Nippon Steel shares dropped more than 1.5% in Tokyo trading on Monday.

South Korea’s Posco fell 2.4% as investors worried about reduced access to U.S. markets. The higher tariffs will make foreign steel more expensive for American buyers.

European steel stocks showed mixed reactions to the news. Thyssenkrupp and ArcelorMittal shares edged lower in early trading.

However, SSAB and Acerinox, which both operate facilities in the United States, saw their shares rise. These companies may benefit from their existing U.S. production capacity.

U.S. Steel Deal Remains on Track

U.S. Steel shares remained largely unchanged at $54.23 despite the broader steel sector rally. The company is set to be acquired by Japan’s Nippon Steel for $55 per share.

Trump used Friday’s rally to celebrate the $14 billion deal between the two companies. He said the agreement would ensure U.S. Steel “stays an American company” with headquarters remaining in Pittsburgh.

Nippon Steel has promised to invest $14 billion in upgrading and expanding U.S. Steel facilities. The deal was structured as a partnership, though Nippon will take control of U.S. Steel assets.

Current steel prices stand at about $875 per metric ton. This represents an increase from approximately $725 per ton before Trump first imposed 25% steel tariffs in February.

The United States remains a net importer of steel despite existing tariffs. The new 50% rate is expected to trigger price increases across the domestic market starting Wednesday.

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