Cleveland-Cliffs Inc (NYSE:CLF) shares surged 5% in pre-market trading on Wednesday, fueled by a robust outlook for 2025 as the company prepares to benefit from recently announced tariffs on steel imports and the successful integration of Stelco.

The steelmaker's order book and lead times for hot-rolled steel have increased substantially in recent months, signaling a strong rebound in demand. This positive trend, combined with improved market conditions resulting from the 25% tariffs on steel imports from all countries, has positioned Cleveland-Cliffs for a promising year ahead.

According to CEO Lourenco Goncalves, the tariffs are crucial in addressing unfair competition and overproduction from foreign producers. He expressed appreciation for the Trump administration's efforts to support domestic manufacturing, stating, "These tariffs are critical to addressing the problem, and we thank the Trump administration to have the courage to implement these tariffs."

In addition to the favorable tariff environment, Cleveland-Cliffs has successfully integrated the recently acquired Stelco, with operational transitions going smoothly. The company has set in motion expected synergies of $120 million from the combination and is identifying further opportunities to maximize value.

Cleveland-Cliffs' strong liquidity position, with $3 billion available and secured debt capacity intact, further bolsters its financial flexibility. The company's recent capital raise was oversubscribed, underscoring investor confidence in its strategic initiatives.

Moreover, the steelmaker's commitment to workforce safety has been exemplary, with a total reportable incident rate of 0.9 in 2024, showcasing its dedication to prioritizing employee well-being.