Monday, June 2, 2025, saw a whirlwind of activity on the stock market, with steel stocks leading the charge following a major policy announcement by President Donald Trump. The steel sector experienced a significant surge, with Cleveland-Cliffs shares soaring by as much as 26% in premarket trading, reflecting investor optimism after Trump declared a doubling of tariffs on imported steel. This move, announced at a rally in Pennsylvania on May 30, raised tariffs from 25% to 50%, aiming to bolster the U.S. steel industry and secure domestic jobs.
Cleveland-Cliffs, a major player in the steel production and mining industry, was the standout performer, with its stock price jumping roughly 22% during regular trading hours, and even more in early trading. Other steel giants followed suit: Steel Dynamics’ shares climbed more than 13%, Nucor rose over 12%, and the VanEck Steel ETF (SLX), which tracks the steel sector, increased by more than 3%. These gains underscore the market’s positive reception to Trump’s aggressive tariff strategy.
At the rally, President Trump emphasized the protective intent behind the tariff hike. "We are going to be imposing a 25% increase. We're going to bring it from 25% to 50% — the tariffs on steel into the United States of America, which will even further secure the steel industry in the United States," he declared. The announcement also coincided with the celebration of a "blockbuster agreement" between U.S. Steel and Japan’s Nippon Steel, a partnership Trump hailed as a boon for American workers. He assured the public that U.S. Steel would be "controlled by the USA" and promised no layoffs would occur, highlighting the deal’s potential to create at least 70,000 jobs in the U.S. economy.
However, this bold move has not been without controversy. European Union officials swiftly criticized the tariff increase, stating on May 31 that Trump’s plan "undermines ongoing efforts to reach a negotiated solution" and warning that the EU is prepared to impose countermeasures. The tension marks a fresh flare-up in global trade relations, with the U.S. doubling down on protectionist policies amid a complex international economic landscape.
Meanwhile, the ripple effects of these developments extended beyond steel. Tesla, the electric vehicle giant, experienced a decline of over 2% in its stock price, pressured by strong sales reports from Chinese competitors Li Auto, XPeng, and NIO in May 2025. While NIO’s shares edged up 1.4% in premarket trading, XPeng and Li Auto saw slight declines, reflecting a mixed investor response to the competitive dynamics in the EV market.
In the biotechnology sector, Moderna’s shares rose 4% in premarket trading following a significant regulatory milestone. On May 31, the U.S. Food and Drug Administration approved a new COVID-19 vaccine targeting all adults aged 65 and older, as well as individuals aged 12 to 64 with at least one underlying risk factor. This approval marks an important step in protecting vulnerable populations amid ongoing public health challenges and has been positively received by investors.
Blueprint Medicines and BioNTech were also among the stocks moving significantly on June 2, reflecting continued investor interest in biotech innovations, though their specific stock movements were less pronounced than Moderna’s.
DraftKings, the sports betting and entertainment company, was another notable mover, benefiting from ongoing growth in the gambling sector, although detailed figures were not highlighted.
The steel industry’s rally on June 2 can be seen as a direct response to Trump’s tariff announcement, which aims to shield American manufacturers from foreign competition by making imported steel more expensive. This protectionist stance is designed to encourage domestic production and preserve jobs within the U.S. steel sector, a politically sensitive and economically significant industry.
Yet, the international backlash underscores the delicate balance policymakers must strike. While the tariffs may provide short-term relief and market boosts for U.S. steel companies, they risk provoking retaliatory measures that could escalate trade tensions and disrupt global supply chains. The European Union’s readiness to impose countermeasures suggests that the dispute could have broader implications for international trade relations.
President Trump’s announcement also highlighted the strategic partnership between U.S. Steel and Nippon Steel, which he described as a "blockbuster agreement." The collaboration is framed as a way to strengthen the American steel industry without resorting to outright mergers, with promises of substantial job creation and domestic control. This deal is part of a broader effort to revitalize American manufacturing and counteract decades of industrial decline.
On the other hand, the mixed performance of Tesla and its Chinese rivals illustrates the intense competition in the global electric vehicle market. Tesla’s stock dip amid strong sales from Li Auto, XPeng, and NIO signals shifting investor sentiment and the growing influence of Chinese manufacturers in this rapidly evolving sector.
Meanwhile, the biotech sector’s activity, particularly Moderna’s vaccine approval, highlights ongoing innovation and regulatory progress in healthcare. The FDA’s green light for the new COVID-19 vaccine targeting older adults and those with risk factors represents a critical advancement in public health efforts, with potential to reduce severe outcomes and hospitalizations.
In summary, June 2, 2025, was a day marked by significant market movements driven by political decisions, international trade dynamics, and sector-specific developments. The steel industry’s surge reflects the immediate impact of tariff hikes aimed at protecting domestic production, while the biotech and automotive sectors experienced shifts tied to regulatory approvals and competitive pressures. Investors and policymakers alike will be watching closely as these stories unfold in the coming months.
