Cleveland Cliffs Stock Soars On Trump Tariff Policy

President Donald Trump’s recent announcement to double tariffs on imported steel and aluminum from 25% to 50%, effective June 4, 2025, has significantly impacted U.S. metal stocks. The tariff increase has bolstered U.S. metal producers by reducing foreign competition and driving up domestic prices.

The most notable jump can be seen for Cleveland-Cliffs (NYSE:CLF), whose stock price jumped approximately 33% in the pre market trading on Monday, following the tariff announcement. As a vertically integrated producer, Cleveland-Cliffs is well-positioned to capitalize on increased demand across the steel production chain. Nucor Corp (NYSE: NUE) stock is also up around 13% in pre-market trading on Monday.  United States Steel stock (NYSE:X) shares have surged 22% in the past week and are up nearly 65% year-to-date. When a single product contributes nearly half of total sales, diversification becomes a critical consideration. That’s why our High Quality (HQ) portfolio emphasizes a balanced mix of sectors. This diversified strategy has helped the HQ portfolio outperform the S&P 500, generating returns of over 91% since inception. Also, check out – Buy, Sell, or Hold CLF Stock?

Factors that drove changes in Cleveland-Cliffs stock 

CLF stock has dropped 66% in the last one year and around 76% in the last three years. Some of the decline of the last few years is justified by the average 6% decline seen in CLF’s revenues from 2022 to 2024. Revenue declined by around 15% in the last twelve months.

Cleveland-Cliffs witnessed a revenue growth from 2021 to 2022 which has since then been on a declining trend, its PS multiple has also seen a drop. The company’s PS multiple changed from 1.1xin 2020 to 0.48x in 2023. While the company ‘s PS is now 0.2x there is a potential upside when the current PS is compared to levels seen in the past years. 

What to expect from Cleveland-Cliffs stock

For the first quarter of 2025, CLF reported revenues of  $4.6 billion, up from $4.3 billion in Q4 2024. The company incurred a net loss of $483 million, or $1 per diluted share. The company attributed its underperformance to underutilized non-core assets and the lagging impact of previously low steel prices. In response, Cleveland-Cliffs announced plans to idle several facilities, including two iron mines in Minnesota and multiple steel processing units in Michigan, Pennsylvania, and Illinois. Additionally, the company halted capital spending on a transformer facility in Weirton, West Virginia. These measures are expected to save over $300 million annually. See our analysis on Cleveland-Cliffs Valuation: Is CLF Stock Expensive Or Cheap? for more information on what’s driving our valuation for Cliffs. See our analysis of Cleveland-Cliffs Revenue for more details on the company’s key revenue streams and how they are expected to trend.

While these metals and mining stocks like CLF are currently benefiting, the long-term impact will depend on whether the tariffs remain in place, how global markets react, and whether domestic production can meet demand without significantly raising costs.

Investors should consider the company’s solid recent performance alongside the very real challenges ahead. Investment diversification—across sectors and stocks—is essential to avoid this kind of concentration risk. Our Trefis High Quality (HQ) portfolio is built on that principle, outperforming the S&P 500, Nasdaq, and Russell 2000 with over 91% returns since inception. That balance of risk and reward is what makes diversification critical.

Invest with Trefis Market-Beating Portfolios

See all Trefis Price Estimates