Cleveland-Cliffs (CLF), a major steel producer, saw its stock price plummet by 5.03% during the intraday trading session on Tuesday. The sell-off came amid concerns over the impact of tariffs imposed by the Trump administration and the potential implications for inflation in the United States.

President Donald Trump announced a 25% tariff on steel and aluminum imports, escalating his efforts to protect the domestic steel industry. While this move initially boosted shares of steel producers like Cleveland-Cliffs, concerns grew about the potential for retaliatory measures and the overall impact on the broader economy.

Adding to the bearish sentiment, investors also awaited Federal Reserve Chair Jerome Powell's testimony before the Senate Banking Committee. Powell's comments were expected to shed light on the central bank's stance on inflation and the potential impact of the tariffs on price levels. Traders braced for the possibility of further interest rate hikes if inflationary pressures intensified due to the tariffs.