Cleveland-Cliffs Inc (NYSE: CLF) is having a relatively strong start to the trading session in the pre-market hours this morning, and for good reason. The gains ultimately stem from statements made by President Donald Trump with regard to a tariff on steel imports yesterday. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
Trump Gives CLF A Boost
As mentioned above, Cleveland-Cliffs is having a relatively strong time in the pre-market hours this morning, following news that broke yesterday surrounding a tariff on steel imports. In a statement made yesterday, President Donald Trump announced that the country will be moving forward with tariffs on both steel and aluminum. Moving forward, steel that will cross the United States border will be charged a 25% tariff. Aluminum crossing the border will be charged a 10% tariff.
This is great news for CLF. After all, the company is the largest merchant supplier of iron ore pellets to the United States steel industry. Ultimately, this will prop United States companies up as price competition from overseas will be greatly reduced. In a statement, Lourenco Goncalves, President and CEO at CLF, had the following to offer:
We applaud and thank President Trump for taking real action under Section 232 to punish the perpetrators and enablers of unfairly traded steel. The 25 percent tariffs to be imposed next week will support our ability to continue to produce iron ore pellets and steel in our country, enhancing a vibrant manufacturing economy and our national security. Artificially cheap steel boosted by subsidies, dumping and circumvention are not signs of competitiveness; these are just signs of blatant disregard to real free trade and our trade laws. Once free from these unfair practices, we will finally have a level playing field for steel in the United States. Going forward, we expect that the Administration will fully enforce the announced actions, making sure that the offenders, particularly the enablers within our borders, will be treated as seriously as they deserve.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news surrounding the steel industry, an industry in which Cleveland-Cliffs is intertwined, was overwhelmingly positive. So, it’s no surprise that we’re seeing gains in the value of the stock today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:39), CLF is trading at $7.95 per share after a gain of $0.20 per share or 7.58% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CLF. In particular, we’re interested in following the revenue and earnings generated by the company to see how these tariffs affect the company’s bottom line. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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