3 Stocks Poised for Growth as Trump Doubles Steel Tariffs

U.S. President Donald Trump does it again. In a bid to protect American industry, he has doubled down, literally, on his favorite economic weapon — tariffs. Effective today, the United States has raised import duties on steel and aluminum from 25% to 50%, a move to bring industrial strength back home.

The United Kingdom is the only country spared, thanks to a preliminary trade deal. But major suppliers like Canada, Mexico, Brazil and South Korea are now in the crosshairs. The United States is the world’s second-largest steel importer after the EU, and this tariff hike is expected to disrupt supply chains and raise input costs for a range of industries — from auto and aerospace to appliances and construction. Trump’s message is clear — if you're a U.S. manufacturer, buy American or pay the price.

While the move has drawn criticism from global allies and could invite retaliation, it will deliver meaningful gains for certain U.S.-based companies. Trump’s goal is to make foreign metals less competitive, thereby boosting demand for domestic producers. Stocks like Nucor Corporation NUE, Steel Dynamics, Inc. STLD and Cleveland-Cliffs Inc. CLF are well-positioned to ride this tariff wave higher.

All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nucor

As the largest steel producer in the United States and the biggest by market cap, Nucor has carved out a powerful position in the industry. Like some of its peers, Nucor relies on electric arc mini-mills — efficient, flexible facilities that melt scrap metal rather than using iron ore and coal. It isn’t just a steelmaker. It takes its raw steel and turns it into high-value products like building components, electrical infrastructure parts, and even racks for data centers. That has helped the company grow beyond the boom-and-bust steel cycle.

Nucor is also investing heavily in its future. It’s spending $6.5 billion on eight major projects through 2027, including new mills and upgraded facilities. Strategic acquisitions like Southwest Data Products and Rytec Corporation are helping Nucor expand into tech and infrastructure markets where demand is rising.

Encouragingly, Nucor is a dividend king, raising its payout for more than 50 straight years. It’s also buying back shares aggressively, with more than $3.1 billion spent since the program’s inception, reducing share count by 8%.It remains committed to returning at least 40% of annual net earnings to its shareholders. 

Nucor’s scale of its operations, its highly diversified product portfolio and its long-term focus on shareholder value are key tailwinds for the company.

The Zacks Consensus Estimate for NUE’s 2025 EPS has moved north by 3 cents to $7.88 in the past 30 days. The consensus mark for 2026 EPS implies an uptick of 35.4% from projected 2025 levels.

Nucor Corporation Price and Consensus

Nucor Corporation price-consensus-chart | Nucor Corporation Quote

Steel Dynamics

Steel Dynamics may be one of the younger players in the U.S. steel industry, but it’s quickly making a name for itself. Built on a foundation of electric arc mini-mills, STLD has become known for its efficient, low-cost operations. One of its most ambitious projects, a cutting-edge flat-rolled steel mill in Sinton, TX, has the capacity to produce around three million tons of steel annually, including advanced high-strength products. This mill is expected to drive a meaningful jump in revenues and profitability.

STLD isn’t just focused on steel. The company is making a strategic push into aluminum, launching a new $2.7 billion initiative that includes a low-carbon aluminum mill and two slab centers. This business line adds a new dimension to its growth story.

Steel Dynamics is also shareholder-friendly. In 2024 alone, it paid out $283 million in dividends and bought back $1.2 billion of its own stock. The trend continued in early 2025, with another dividend hike and fresh buyback authorization worth $1.5 billion.

Backed by a strong balance sheet, smart investments and a customer-first mindset, Steel Dynamics is shaping up as one of the more exciting U.S. metals stocks.

The Zacks Consensus Estimate for STLD’s 2025 EPS has moved north by 13 cents to $10.18 in the past 30 days. The consensus mark for 2026 EPS indicates an uptick of 24.2% from projected 2025 levels.

Steel Dynamics, Inc. Price and Consensus

Steel Dynamics, Inc. price-consensus-chart | Steel Dynamics, Inc. Quote

Cleveland-Cliffs

Cleveland-Cliffs has come a long way from its mining roots. It's not only North America’s largest producer of iron ore pellets, but also the region’s leading flat-rolled steel maker. Thanks to its acquisition of AK Steel, the company transformed into a fully vertically integrated steel producer, controlling everything from raw materials to the finished product. CLF is one of the top suppliers of automotive-grade steel in the United States.

In late 2024, Cleveland-Cliffs acquired Stelco Holdings. This deal hasn’t just boosted production capacity, it has doubled the company’s exposure to the flat-rolled spot market and expanded its customer base across construction and industrial sectors. Stelco has also brought cost advantages in raw materials and energy while unlocking new synergies.

CLF is laser-focused on becoming leaner. After saving $30 per ton in steel costs in 2024, CLF is aiming for an even bigger reduction—$50 per ton in 2025—thanks to smarter operations, increased productivity and the idling of less-efficient assets.

With strong vertical control, a growing footprint and sharp cost discipline, Cleveland-Cliffs is cementing its position as a notable player in the U.S. steel landscape.

While the Zacks Consensus Estimate for CLF’s 2025 bottom line has been revised downward by 9 cents over the past week to a loss of $1.28 per share, projections for 2026 point to a strong recovery.  The consensus mark is pegged at earnings of 47 cents per share—a sharp turnaround from the anticipated 2025 loss.

Cleveland-Cliffs Inc. Price and Consensus

Cleveland-Cliffs Inc. price-consensus-chart | Cleveland-Cliffs Inc. Quote

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This article originally published on Zacks Investment Research (zacks.com).

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