Latest news with #ClevelandCliffs
Japan Times
an hour ago
- Business
- Japan Times
Nippon Steel drops lawsuit against U.S. government after acquiring U.S. Steel
Nippon Steel is dropping a lawsuit against the United States government, chairman and CEO Eiji Hashimoto said as the company finalized its acquisition of United States Steel after an 18-month battle to complete the transaction. The suit has been rendered moot as a result of the successful purchase of the American steel-maker, Hashimoto said in reply to a question from The Japan Times after his meeting with trade minister Yoji Muto on Thursday evening. 'We were able to achieve our objective, so there is no longer a meaningful reason to continue that case — in a good sense,' he explained. A separate civil suit against a competitor and a union leader has not yet been dropped. Nippon Steel and U.S. Steel filed the lawsuit against the U.S. government in January to challenge former U.S. President Joe Biden's blocking of the transaction on national security grounds. They argued that the companies were denied due process and other rights, and claimed that the $14.9 billion transaction was blocked for political reasons. U.S. President Donald Trump, who had voiced opposition to the deal during his presidential campaign, reversed his predecessor's decision last week . He said the Japanese firm could buy the U.S. company if it signed a national security agreement with the U.S. government. Nippon Steel finalized the transaction on Wednesday. The civil suit alleges that United Steelworkers union President David McCall, Cleveland-Cliffs and Lourenco Goncalves, CEO of Cleveland-Cliffs, engaged in 'illegal and coordinated actions' to sabotage the U.S. Steel acquisition. Goncalves has dismissed Nippon Steel's claims, saying the accusations are "baseless." An outspoken critic of the Nippon Steel-U.S. Steel deal, Goncalves described Japan as 'evil' for 'teaching China how to dump steel.' In the lawsuit, he was accused of launching a 'public smear campaign' and 'trafficking in xenophobic stereotypes' about foreign investors to kill the deal. Cleveland-Cliffs made an unsolicited bid in July 2023 to purchase U.S. Steel for $35 a share — later raised to $54, according to reports — in cash and stock. Nippon Steel made an all-cash offer of $55 a share. McCall, who has been vocal in his opposition to the Nippon Steel transaction from the outset, said in a Wednesday statement that the union will 'continue watching' and hold Nippon Steel to its commitments. 'We will decide how to proceed after closely observing how the other parties respond, so no final decision has been made on that yet,' Hashimoto said of the civil lawsuit.
Yahoo
10 hours ago
- Business
- Yahoo
Cleveland-Cliffs (CLF) Dives 4% After Losing US Steel Bet
We recently published a list of 10 Stocks Take A Shocking Nosedive. Cleveland-Cliffs Inc. (NYSE:CLF) is one of the worst-performing stocks on Thursday. Cleveland-Cliffs dropped its share prices by 4.43 percent on Wednesday to end at $7.33 apiece as investors sold off positions following Nippon Steel's successful acquisition of US Steel Corp. It can be recalled that Cleveland-Cliffs Inc. (NYSE:CLF) repeatedly attempted to acquire US Steel since 2023 after former president Joe Biden blocked Nippon Steel's purchase plan over national security issues. However, even its proposal had been repeatedly rejected. President Donald Trump officially gave his green light for Nippon Steel's acquisition on condition that it will sign a national security agreement with the US government. Cleveland-Cliffs Inc. (NYSE:CLF) is a US-based steel and iron ore manufacturer based in Cleveland, Ohio, and which strongly supported Trump's imposition of tariffs on steel imports. A welder in a hardhat soldering steel plates to a blueprint plan. Duties on imported steel and aluminum products make domestic manufacturers such as Cleveland-Cliffs Inc. (NYSE:CLF) more appealing to customers as it may bolster demand for their products, support competitive pricing for locally-produced goods, and further reduce competition with international producers. While we acknowledge the potential of CLF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
11-06-2025
- Business
- Globe and Mail
Why Cleveland-Cliffs Stock Just Dropped
Cleveland-Cliffs (NYSE: CLF) stock fell 8.5% through 2:10 p.m. ET Tuesday after Reuters reported on new trade negotiations between the U.S. and Mexico that could significantly roll back 50% tariffs on steel imports -- which had themselves been announced only last week. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 50% -- up to a point The negotiations would not affect all steel imports -- only those from Mexico, and only to an extent. While details haven't yet been made public, Reuters reports the idea will be to permit a certain quota or specified volume of steel to come into the U.S. from Mexico duty free, or at a reduced tariffs rate. Imports in excess of that quota or volume limit would still pay the 50% tariff. And of course, the 50% tariff will remain in place for imported steel from other countries. Is Cleveland-Cliffs stock a sell? Just the rumor of the creation of this single Mexican loophole, though, seems to have shaken investors' confidence that Cleveland-Cliffs stock is a sure thing -- and no wonder. After all, if tariffs can be renegotiated lower with one country, they can be renegotiated lower with other countries as well -- or even lowered back down to previous levels with entire regions (such as the E.U. or North America), or with the world as a whole. That would be bad news for Cleveland-Cliffs investors, who've been counting on tariff policy to help turn their company profitable again, after losing $754 million a year. At the same time, the company has to worry about domestic competition from a U.S. Steel that will soon be backed by money from Japan's Nippon Steel. It's a good reminder for investors: If you're counting on a change in government policy to save your stock, you may be setting yourself up for a fall. Should you invest $1,000 in Cleveland-Cliffs right now? Before you buy stock in Cleveland-Cliffs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cleveland-Cliffs wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Wall Street Journal
07-06-2025
- Business
- Wall Street Journal
Trump's New Steel Tariffs Look Vulnerable to a Courtroom Challenge
U.S. steelmaker shares soared on news of President Trump's new tariffs. But are these tariffs as bulletproof as investors seem to believe? The steel tariffs, like those on autos and auto parts, are sector-based. They differ in that respect from the 'Liberation Day' tariffs Trump unveiled in April. The U.S. Court of International Trade in May blocked Trump's tariffs on U.S. trading partners, rejecting the argument that he could invoke emergency powers to set the country-by-country tariffs. An appeals court stayed that ruling, pending its own review. The conventional wisdom in the markets has been that Trump's recent sector-based tariffs are on firmer legal footing. That might not be the case, though. In fact, there is reason to believe his new 50% tariff on imported steel could be vulnerable to a legal challenge. To speed up the process, Trump piggybacked on the findings of a national-security investigation by the Commerce Department in 2018, during his first term. The question now is whether the findings were too stale to be the basis for a new tariff hike, and thus whether Trump should have sought a new national-security investigation first. Going that route would have delayed his CLF 7.04%increase; green up pointing triangle is up 30% since Trump announced his new tariff plans May 30. Nucor NUE 2.37%increase; green up pointing triangle and Steel Dynamics STLD 1.11%increase; green up pointing triangle are up 11% and 9%, respectively. The tariff increase took effect June 4. Trump also relied on Commerce Department findings from his first term in office when raising sector-based tariffs this year on aluminum, autos and auto parts. His directive raising aluminum tariffs to 50% from 25% took effect June 4, as well. While it is too soon to know whether the sectoral tariffs will draw serious court challenges, a look at the legal underpinnings shows potential soft spots. Trump in his June 3 proclamation said he exercised his authority under the Trade Expansion Act of 1962 to raise steel tariffs to 50% from 25%. In doing so, he cited the Commerce Department's 2018 investigative report that concluded the quantities of steel being imported into the U.S. threatened to harm national security. The trade statute says the president, within 90 days of such a report, shall determine whether he concurs with the findings and decide what action to take in response. After that, he has 15 days to implement the action. A 2021 ruling by a three-judge panel of the U.S. Court of Appeals for the Federal Circuit said the deadlines aren't strict and some flexibility is allowed. In that case, Trump waited five months after his initial 2018 action to boost tariffs on imported Turkish steel to 50% from 25%. An importer, Transpacific Steel, sued, and the Court of International Trade ruled against the higher tariffs on Turkish imports, saying Trump had gone past the statutory time limit. (By then, Trump had already returned the tariff on Turkish steel to 25%.) The appellate court reversed that ruling in a 2-1 decision. That decision might have opened the door for Trump to rely on the same 2018 investigative report yet again—seven years later—for his latest tariff boost. However, the appeals court said its ruling applied 'in the circumstances presented here.' A decision could turn out differently in other circumstances, such as where the investigative findings are 'simply too stale to be a basis' for new presidential actions, the court said. Tim Meyer, an international-trade specialist and professor at Duke Law School, said the appeals court's ruling appears to leave room for a plaintiff to challenge the new steel tariffs. 'The tricky part is how to apply the standards the court identifies,' he said. 'For example, what does it mean for a report to be 'stale'? The court seems to suggest that the passage of time might be enough. But how much time is too much time?' Much has happened in the past seven years, including a pandemic. U.S. steel imports were 26.2 million metric tons in 2024, according to the Commerce Department, down 24% since 2017. That point alone could underscore the need for new investigative findings as a predicate for presidential action. Trump in his June 3 proclamation said he also considered 'current information newly provided' by the Commerce Department, but didn't say what it was. Investors will be watching to see if any well-heeled plaintiffs surface to contest the tariffs. Gordon Johnson, chief executive at GLJ Research, in a June 2 note to clients said he believed the surge in steel stocks was premature and that the new 50% tariffs 'could be overturned due to a lack of a new investigation.' He also noted that no one had sought an injunction yet to block them. That said, he wrote, 'we believe there are procedural problems that make these new tariffs vulnerable to a lawsuit.' Steelmaker shares could take a hit if a court invalidated the sectoral tariffs. U.S. automaker stocks, on the other hand, could rally. Of course, the Trump administration could simply initiate new Commerce Department investigations and reinstitute the tariffs later. The net result for investors and the economy ultimately might be just more prolonged uncertainty about Trump's favorite negotiating tool. Write to Jonathan Weil at
Yahoo
06-06-2025
- Business
- Yahoo
Why Cleveland-Cliffs Stock Soared This Week
President Trump raised foreign steel tariffs to 50%, boosting American steel stocks, such as Cleveland Cliffs. The company's steel will now be significantly more competitive. However, the tariffs may very well not hold. 10 stocks we like better than Cleveland-Cliffs › Shares of Cleveland-Cliffs (NYSE: CLF) are moving higher this week, up 28.8% from last Friday's close as of 2:00 p.m. ET. The gain comes as the S&P 500 rose 1.5% and the Nasdaq-100 increased 2.1%. The American steelmaker will benefit from President Donald Trump's new steel tariffs that went into effect earlier this week. Last week, the Trump administration announced it would raise the already levied 25% tariffs on foreign steel to 50%. On Tuesday, President Trump officially signed the executive order, which went into effect on Wednesday. Now, all steel (and aluminum) imports will be subject to a 50% surcharge, with the exception of steel from the U.K., which will receive a 25% charge. While economists are dubious of any positive effects for the broader economy, American steel manufacturers, such as Cleveland Cliffs, will benefit. Their steel will now be significantly more competitive in price. While Cleveland will benefit in the short term, as we've seen, these tariffs are subject to change very quickly and without warning. President Trump's decisions to impose and then repeal tariffs could easily be described as capricious. Furthermore, even if President Trump remains firm, there is a very good chance that whatever administration follows will reduce or repeal them entirely. Without them, Cleveland has struggled. It barely turned a profit in 2023 and has operated in the red every quarter since, save for one in which it netted just $2 million on $5 billion in sales. These losses are growing, too. I would stay away from the stock. Before you buy stock in Cleveland-Cliffs, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Cleveland-Cliffs wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,395!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $858,011!* Now, it's worth noting Stock Advisor's total average return is 997% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Cleveland-Cliffs Stock Soared This Week was originally published by The Motley Fool
