President Trump’s surprise pledge to double tariffs on foreign steel has sent U.S. steel stocks flying. On Friday night in Pennsylvania, Trump said he’d raise steel import duties from 25% to 50%. By Monday morning, Cleveland-Cliffs (CLF), Steel Dynamics (STLD), and Nucor (NUE) were all deep in the green.
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Cleveland-Cliffs (CLF) Rockets on Tariff Tailwind
Cleveland-Cliffs surged 27% premarket, snapping a brutal year-to-date slide. Investors jumped in fast — and for good reason. Tariffs mean higher prices for U.S. steelmakers, and CLF, with its heavy domestic footprint, is right in the firing line to benefit. But there’s baggage too: the company’s Q1 numbers weren’t pretty, and it’s been bleeding cash.
Still, in a market driven by headlines and hype, Cliffs is suddenly looking like a comeback play — if tariffs stick and demand doesn’t collapse.
Steel Dynamics (STLD) Gains Ground on Dividend and Demand
Steel Dynamics also caught a bid, jumping nearly 10%. The stock’s been in the red for most of 2025, but the market liked what it saw: a clean $4.4 billion in quarterly revenue and a second-quarter dividend to boot. Add in the tariff boost, and investors are starting to look at STLD less like a laggard and more like a value play.
This isn’t a meme stock moment — STLD’s got fundamentals to back up the move. The only question is whether higher input prices and slowing global growth will eat into the gains.
Nucor (NUE) Earns Analyst Cheers after BMO Upgrade
Nucor tacked on 9% after BMO Capital upped its rating to Outperform. The timing was tight: Nucor had already reported $156 million in Q1 profits and was talking up its $860 million capex plan. But with tariffs hitting just as Nucor readies fresh investment, the upgrade had teeth.
Investors seem to be betting that NUE’s ability to reinvest at scale — and stay efficient — puts it in pole position if steel prices keep rising.
U.S. Steel (X) Stays Flat as Trump Talks Up Nippon Deal
U.S. Steel barely budged, stuck just below its $55 takeover price. Trump called the deal a “blockbuster agreement” and promised the company would remain headquartered in Pittsburgh. But the real action here is political — the takeover by Japan’s Nippon Steel is already in motion.
Tariffs might not change much for X shareholders now, but if the deal falls through, that calculus could flip fast.
Which Is the Best Steel Stock to Buy Now?
Tariffs are a blunt tool — they raise prices and pad margins, but they also stir retaliation. For now, Wall Street’s clearly betting that the domestic players will win. But long-term performance will come down to execution.
If you’re trying to pick winners in this tariff-fueled rally, TipRanks’ Comparison Tool helps break things down.
Cleveland-Cliffs has the biggest potential pop — a 57% price target upside — but its fundamentals remain shaky, with no dividend and a subpar Smart Score of 7. Think high risk, high reward. Steel Dynamics is the steadiest hand: it offers a decent yield, a reasonable valuation, and a Strong Buy consensus. Nucor looks like the most well-rounded pick — solid upside, strong analyst support, and healthy cash flows.
As for U.S. Steel? It’s a “Hold,” stuck in acquisition limbo and offering little near-term upside — in fact, analysts project a 14% drop from here.
