Steel and Aluminum Tariffs May Raise US Manufacturing Costs

Cleveland-Cliffs (CLF) is likely to benefit from the new tariffs as it is a domestic steel producer. Increased tariffs on imported steel and aluminum will encourage manufacturers to source materials locally, potentially leading to higher revenues for Cleveland-Cliffs. This could result in a positive direction for CLF's stock as demand for U.S. steel increases.

Companies heavily reliant on imported steel, such as large automotive manufacturers, may face higher production costs as a result of these tariffs. This could negatively impact their profit margins and consequently their stock prices. Notably, Ford Motor Company (F) and General Motors Company (GM) could be negatively affected.

The iShares U.S. Infrastructure ETF (IFRA) could see a mixed reaction. While domestic metal producers benefit, higher costs of steel and aluminum might slow infrastructure projects that depend heavily on metal inputs, impacting overall sector performance. Therefore, caution is advised with IFRA.