Cleveland-Cliffs Shares Rise 13% After Q2 Earnings, Tariff Boost

Cleveland-Cliffs (CLF) shares have surged significantly following the company's better-than-expected second-quarter earnings, driven by cost reductions and strong domestic demand fueled by President Trump's tariff policies. The steelmaker reported narrowing losses and revenue that exceeded analyst estimates, with CEO Lourenco Goncalves highlighting the positive impact of tariffs on domestic manufacturing and the American automotive industry. Despite a slight revenue decline, the company’s operational efficiencies and tariff-driven pricing improvements are expected to enhance future quarters, supporting debt repayment and cash generation. Analysts hold a consensus 'Hold' rating on the stock, with an average price target below the current share price, though GuruFocus estimates suggest a substantial upside potential based on historical valuations and growth forecasts. Cleveland-Cliffs plans to reduce capital expenditures for 2025 and continue operational savings, reflecting a strategic focus on optimizing its U.S.-based footprint. Overall, the company is positioned to benefit from a resurgence in the domestic steel industry under the current administration's trade policies.