Cleveland-Cliffs (CLF) Stock Tumbles On US-Mexico Steel Tariff Deal Report

Shares of domestic steel producers, including Cleveland-Cliffs Inc CLF, faced significant downward pressure Wednesday morning following reports of a potential trade deal between the United States and Mexico. The proposal would see the removal of the Trump Administration’s 50% tariffs on Mexican steel imports up to a certain quota.

What To Know: The tentative agreement, reportedly being spearheaded by Commerce Secretary Howard Lutnick, aims to establish a cap on tariff-free steel imports based on historical trade volumes. This development marks a potential reversal of the steep tariffs announced at the end of May, which were intended to bolster the American steel industry.

While the deal still requires final approval from President Donald Trump, the prospect of increased import competition has sent ripples through the steel sector.

The market reaction was swift, with investors selling off shares in major U.S. steel companies late Tuesday. The move reflects concerns that an influx of tariff-free Mexican steel could lead to oversupply and depress domestic prices, impacting profitability for companies like Cleveland-Cliffs.

Price Action: According to data from Benzinga Pro, shares of Cleveland-Cliffs were trading down 7.98% at $7.38 Wednesday morning. The stock also has a significant short interest, with 32.57% of the float being sold short.

Read Also: Inflation Resumes Climb In May, But Tariffs Have Yet To Hit Consumers

How To Buy CLF Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Cleveland-Cliffs’ case, it is in the Materials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, CLF has a 52-week high of $16.47 and a 52-week low of $5.63.