Why Cleveland-Cliffs Stock Soared This Week
Shares of Cleveland-Cliffs (NYSE: CLF) are moving higher this week, up 28.8% from last Friday's close as of 2:00 p.m. ET. The gain comes as the S 500 rose 1.5% and the Nasdaq-100 increased 2.1%. The American steelmaker will benefit from President Donald Trump's new steel tariffs that went into effect earlier this week.
Last week, the Trump administration announced it would raise the already levied 25% tariffs on foreign steel to 50%. On Tuesday, President Trump officially signed the executive order, which went into effect on Wednesday. Now, all steel (and aluminum) imports will be subject to a 50% surcharge, with the exception of steel from the U.K., which will receive a 25% charge.
While economists are dubious of any positive effects for the broader economy, American steel manufacturers, such as Cleveland Cliffs, will benefit. Their steel will now be significantly more competitive in price.
Source Fool.com
