Steel stocks jumped Monday after President Trump vowed to double tariffs on the metal to 50% — and vowed to revive the American steel industry.
Shares in mining company Cleveland-Cliffs soared 21.4% by approximately 1:00 p.m. ET, while Steel Dynamics and Nucor Corp rose 9.7% and 8.7%, respectively.
During a Pennsylvania rally on Friday, Trump told steelworkers he would hike the tax on steel imports so Pittsburgh would be “respected around the world as the Steel City again.”
“At 25%, they can sort of get over that fence. At 50%, they can no longer get over the fence,” Trump said.
“We don’t want America’s future to be built with shoddy steel from Shanghai, we want it built with the strength and the pride of Pittsburgh.”
The move once again inflamed global trade tensions, with the European Union arguing that Trump’s plan “undermines ongoing efforts to reach a negotiated solution.” The 27-nation trade bloc said it “is prepared to impose countermeasures.”
Trump made the visit to Pennsylvania to tout a $14 billion deal investment from Japan’s Nippon Steel toward US Steel.
The Japanese firm’s proposed acquisition of US Steel has been controversial and delayed by lawmakers across the political spectrum for years.
The terms of the new deal – which Trump has called a “partnership,” not a merger – are still somewhat murky, though US Steel will remain an American-majority board and a US government veto over decisions.
“This is an incredible deal for American steel workers, and it includes vital protections to ensure that all steel workers will keep their jobs and all facilities in the United States will remain open and thriving,” Trump said.
“For decades, you watched as one globalist politician after the next sold you out and sent your dreams to China and to many other foreign countries. But now you finally have a president who’s working for you and fighting for you.”
Trump announced the higher steel tariff just days after a federal court blocked the majority of his tariffs – excluding the taxes on steel, aluminum and auto parts and cars.
His administration quickly filed an appeal and requested a stay on the order in the meantime, which an appeals court granted.
Trump blasted the court’s ruling as an imposition on his executive power and demanded the Supreme Court quickly take up the issue.
