American steelmakers surge after Trump doubles tariffs on imported steel, aluminum to 50%

[large bowl of molten metal at a steel mill. Steel production.]
lyash01/iStock via Getty Images

Shares of U.S. steel producers rally in pre-market trading Monday, with Cleveland-Cliffs (NYSE:CLF [https://seekingalpha.com/symbol/CLF]) +28.6%, Steel Dynamics (STLD [https://seekingalpha.com/symbol/STLD]) +13% and Nucor (NYSE:NUE [https://seekingalpha.com/symbol/NUE]) +10.3%, after President Trump said Friday that tariffs on imported steel and aluminum would increase to 50% from 25% [https://seekingalpha.com/news/4454026-trump-says-hes-doubling-steel-tariff-to-50-during-us-steel-plant-visit], effective June 4.

Also: Century Aluminum (CENX [https://seekingalpha.com/symbol/CENX]) +14.2% and Commercial Metals (CMC [https://seekingalpha.com/symbol/CMC]) +10%, but Alcoa (AA [https://seekingalpha.com/symbol/AA]) -1.7%; US Steel (X [https://seekingalpha.com/symbol/X]), which already hit a multi-year high $54.03 on Friday after Trump conditionally approval Nippon Steel's merger deal, -0.8%.

Global prices for steel have been falling in recent months, making it easier for steel buyers to pay the existing duty on imports and still acquire steel at a discount to domestic prices.

Korean steelmaker Posco (PKX [https://seekingalpha.com/symbol/PKX]) -1.5% pre-market, as the tariffs are expected to will add to the challenges [https://www.reuters.com/world/asia-pacific/south-korea-minimise-impact-50-tariff-steel-products-ministry-says-2025-06-02/] already facing Korean steel exporters; South Korea was the fourth-biggest exporter of steel to the U.S. last year, behind Canada, Mexico and Brazil.

Higher tariffs on steel and aluminum raise the possibility that tariffs will be imposed on copper imports, Goldman Sachs analysts said in a note.

While U.S. steel futures should rally on the higher duties, spot prices may not fully price it in, given "still-high US steel inventories, lackluster demand, and a relatively low import requirement," Goldman wrote, adding that higher prices would further weigh on U.S. steel demand from the manufacturing sector.

ETFs: (SLX [https://seekingalpha.com/symbol/SLX]), (CPER [https://seekingalpha.com/symbol/CPER]), (COPX [https://seekingalpha.com/symbol/COPX])

MORE ON CLEVELAND-CLIFFS AND NUCOR

* Cleveland-Cliffs: Trying To Call The Bottom Is Not Worth It [https://seekingalpha.com/article/4788924-cleveland-cliffs-trying-to-call-the-bottom-is-not-worth-it]
* Cleveland-Cliffs And Its 3 Pillars Driving A Turnaround By 2026 [https://seekingalpha.com/article/4785076-cleveland-cliffs-and-its-3-pillars-driving-turnaround-by-2026]
* Nucor Has Major Macroeconomic Factors Working In Its Favor [https://seekingalpha.com/article/4781032-nucor-major-macroeconomic-factors-working-favor]