Markets respond to Trump’s tariffs on steel and aluminum imports
SINGAPORE (Reuters) – US President Donald Trump said on Sunday that he would introduce a new 25% tariff on all steel and aluminum imports into the United States, in addition to his existing metals operations. He also said mutual tariffs will be announced on Tuesday or Wednesday.
Stocks in Asian steelmakers fell primarily on Monday, except for those operating in the US. The dollar rise and the US Treasury yields are high.
This is what market participants are saying:
Vasu Menon, Managing Director of Investment Strategy, OCBC, Singapore
“It is unclear whether Trump’s latest steel and aluminum tariffs are a negotiation strategy that will dial down later. After all, given its reliance on imported steel and aluminum from Canada and Mexico, the US, if implemented, if it were to be implemented, These metals will damage the US
Markets have dominated along with an escalating trade war, becoming unstable, and investors need to step on with caution for now, perhaps blocking more market turbulence. ”
Kyle Rodda, Senior Market Analyst, Capital.com, Melbourne
“It adds to the potential looming price shock from Trump’s trade policy. In the short term, it’s inflation. It’s long-term, total, and it’s going to be dragged by growth. – Nowadays, competitors like China have As it responds, the market is primarily responding to uncertainty.
Tomo Kinoshita, Global Market Strategist, Investco Asset Management Japan, Tokyo
“Details (of 25% tariffs on steel and aluminum) have not been released, but considering that the US will import more than $100 billion a year, the annual additions caused by this new tariff will be The fee could be around $25. The billion is expected to be less than 0.1% of the inflation effect on the US economy, but up to 0.1%.
Char Chal Chanana, Chief Investment Strategist, Saxo, Singapore
“These threats are justified and appear to be within the power of Trump to implement based on national security. As China is no longer a key steel supplier to the United States after tariffs in 2018 , older playbooks are not available. Instead, the impact is more pronounced in countries such as Canada, Mexico, the EU, Japan, Korea, Taiwan, and Brazil.