Cleveland-Cliffs Stock Is Ripping Higher Monday: Here's Why

Cleveland-Cliffs Inc CLF shares are soaring Monday after U.S. President Donald Trump announced plans to double tariffs on steel.

What Happened: Trump announced on Friday that he would increase steel tariffs from 25% to 50% in an effort to protect the U.S. steel industry.

“Our steel and aluminum industries are coming back like never before. This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers,” Trump said in a post on Truth Social.

The move has added to global trade tensions. The European Commission said over the weekend that Europe was prepared to retaliate against the tariff hike, per Reuters.

Trump said the 25% tariff increases on steel and aluminum would take effect on Wednesday. Cleveland-Cliffs shares were up more than 25% on the news. Shares of Steel Dynamics and Nucor were also up about 11% each at last check, according to Benzinga Pro. The VanEck Steel ETF SLX was up 3.10% at the time of publication.

Check This Out: United States Steel, Applovin And Ulta Beauty Are Among Top Large-Cap Gainers Last Week (May 26-May 30): Are The Others In Your Portfolio?

Is CLF A Good Stock To Buy?

Wall Street analysts view Cleveland-Cliffs on the whole as a Buy, given the history of coverage over the past three months. Christopher LeFemina from Jefferies in Cleveland-Cliffs is the most bearish, expecting a 40.0% fall in the stock in the coming year.

But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, Cleveland-Cliffs fell 23.15%, which indicates that opinion soured on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which fell 10.96% over the past year.

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CLF Price Action: Cleveland-Cliffs shares were up 27.7% at $7.44 at the time of publication Monday, according to Benzinga Pro.

Photo: JHVEPhoto/Shutterstock.