SINGAPORE (Reuters) – U.S. President Donald Trump said on Sunday that he would impose a new 25% tariff on all steel and aluminum imports outside of his existing metal responsibilities. He also said he will announce reciprocal tariffs on Tuesday or Wednesday.
Shares of Asian steelmakers fell most of the time on Monday, except for stocks that operate in the U.S. The dollar rose and the U.S. Treasury yielded higher.
This is what market participants say:
Damian Rooney, Director of Institutional Sales, Argonaut, Perth:
“Trump and tariffs have created a lot of uncertainty that no one likes!
“The market…is trying to digest Trump and the economy.”
Charu Chanana, Chief Investment Strategist, Saxophone, Singapore
“These threats seem legitimate and are powers implemented by Trump on national security. The old script cannot be used because China is no longer an important U.S. steel supplier to the U.S. after the 2018 tariffs. Instead, the impact will It is more obvious in countries such as Canada, Mexico, the EU, Japan, South Korea, Taiwan and Brazil.
“But the direct focus may not be inflation, as there may be opposition effects, such as a slowdown in demand. The greater focus is uncertainty and the shift to a more protectionist world.”
Tony Sycamore, Market Analyst at IG Sydney
“It’s a very different reaction. This week started like last week – we’ve seen the tariff headlines, but in the asset class, that reaction is different… U.S. stock futures trade higher, in fact, even It’s also the same as the ASX 200 makes Australians struggle a little. The problem in the future.”
Daniel Hynes, senior commodity strategist at ANZ Bank Sydney
“I suspect that due to this 25% tariff, U.S. manufacturers will have to wear higher prices. The import dependence of aluminum is high, about 40-45% and steel is 40-45%.
“I suspect we’re seeing regional pricing react first. U.S. prices may be higher, while traders are eager to get metal before applying for tariffs.”
(Report from the Asian Market Team; Editor of Lincoln Feast.)
