EXCLUSIVE: Tariff Titans - Why Cleveland-Cliffs, Nucor, Steel Dynamics Could Outmuscle The Competition

Core Viewpoint - The U.S. has implemented a 50% tariff on imported steel and aluminum, creating significant opportunities for domestic producers like Cleveland-Cliffs Inc, Nucor Corp, and Steel Dynamics Inc [1][2]. Group 1: Impact of Tariffs on Companies - Cleveland-Cliffs Inc experienced a 25.2% gain in early trading following the tariff announcement, allowing the company to raise prices by $200-300 per ton while remaining competitive [3][4]. - Nucor Corp is expected to boost its EBITDA margins to the 18-20% range over the next 12-18 months due to its low-cost electric arc furnace model and reduced import competition [4]. - Steel Dynamics Inc's diversification into aluminum production is now advantageous, as rising tariffs on both steel and aluminum enhance its pricing power [5]. Group 2: Broader Market Implications - Investors may consider steel-focused ETFs like the VanEck Steel ETF and the SPDR S&P Metals and Mining ETF for diversified exposure to the steel sector [6]. - While current gains are significant, there are concerns about potential policy changes by late 2025 due to structural supply gaps and midterm politics [6].