Trump tariffs: world braces for market turbulence after new steel and aluminium tariff announcement – live updates
Opening summary
Hello and welcome to our live coverage of the world’s response to Donald Trump’s announcement that he will soon impose new 25% tariffs on all steel and aluminium imports into the US.
Trump, speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans on Sunday, said he would announce the new metals tariffs on Monday.
He also said he would announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
“And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.
The largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
Vasu Menon, managing director of investment strategy at OCBC in Singapore said it was unclear whether Trump’s latest announcement was a negotiation strategy.
“After all if implemented it will also hurt the U.S. given its dependence on imported steel and aluminum from Canada and Mexico which are major suppliers of these metals to the US,” Menon said.
“Markets will be on edge and volatile with the escalating trade war and investors need to tread with caution for now and brace for possibly more market turbulence.”
Trump’s comments came as China’s retaliatory tariffs, announced last week, came into effect. The measures target $14bn worth of products with a 15% tariff on coal and LNG, and 10% on crude oil, farm equipment and some vehicles.
The agenda
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All day: France will host the Artificial Intelligence (AI) Action Summit, gathering at the Grand Palais
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9.30am ONS stats on UK public service productivity
-
2pm: Christine Lagarde speaking in European Parliament plenary debate on ECB Annual Report 2023
Key events
Aluminium prices are rising, as traders worry about the imposition of new 25% tariffs on imports into the US.
The three-month aluminium contract on the London Metal Exchange (LME) has risen 0.3% to $2,635 (£2,122) a metric ton.
The aluminium contract on the Shanghai Futures Exchange was 0.2% higher at 20,530 yuan (£2,264) a ton.
The market may worry that new trade barriers leads to supply problems, or hits economic growth – meaning less demand for metal.
Kyle Rodda, senior financial markets analyst at Capital.com, explains:
“At the moment we are seeing signs that maybe this could put some upward pressure in the short term on prices just because of the supply element.
“One of the impacts of these tariffs is depressed global economic activity.”
Australia working on exemption from US steel and aluminum tariffs
The Australian government is hoping to make the case for an exemption from U.S. tariffs on steel and aluminum imports.
Anthony Albanese has said he will make the case for “free and fair trade” with America in an upcoming call with the US president, after Donald Trump announced. he would impose tariffs on all steel and aluminium imports into the US.
The Albanese government has been bracing for Trump for announce new tariffs, with senior ministers and officials working behind the scenes for some time to secure tariff exemptions on Australian exports as were achieved during Trump’s first term in office.
The trade minister, Don Farrell, and his colleagues had been seeking to make Australia’s case to avoid such tariffs, with representations made at high levels for exemptions. The defence minister, Richard Marles, was in the US over the weekend meeting with senior Trump officials.
French foreign minister Barrot: We will respond….
France’s foreign minister has pledged to react to Donald Trump’s latest tariff announcements, saying Paris will call on the European Union to respond.
Jean-Noel Barrot told TF1 television that France and its European partners should not hesitate to defend their interests in the face of the US tariff threats.
South Korea holds emergency meeting on steel tariffs
South Korea’s industry ministry says it has held an emergency meeting with steelmakers in Seoul to discuss measures to minimise the impact of potential US tariffs, Reuters reports.
The ministry said it was trying to learn the details of the potential tariffs, after Donald Trump said he would announce new 25% tariffs on all steel and aluminum imports into the U.S.
The ministry also said it would work closely with steelmakers to actively respond to the potential tariffs.
Korean steelmakers supply steel to the factories of car makers Hyundai Motor, Kia Motors as well as television and home appliance companies like Samsung Electronics and LG Electronics in Mexico and the United States, industry officials said.
Opening summary
Hello and welcome to our live coverage of the world’s response to Donald Trump’s announcement that he will soon impose new 25% tariffs on all steel and aluminium imports into the US.
Trump, speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans on Sunday, said he would announce the new metals tariffs on Monday.
He also said he would announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.
“And very simply, it’s, if they charge us, we charge them,” Trump said of the reciprocal tariff plan.
The largest sources of US steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.
Vasu Menon, managing director of investment strategy at OCBC in Singapore said it was unclear whether Trump’s latest announcement was a negotiation strategy.
“After all if implemented it will also hurt the U.S. given its dependence on imported steel and aluminum from Canada and Mexico which are major suppliers of these metals to the US,” Menon said.
“Markets will be on edge and volatile with the escalating trade war and investors need to tread with caution for now and brace for possibly more market turbulence.”
Trump’s comments came as China’s retaliatory tariffs, announced last week, came into effect. The measures target $14bn worth of products with a 15% tariff on coal and LNG, and 10% on crude oil, farm equipment and some vehicles.
The agenda
-
All day: France will host the Artificial Intelligence (AI) Action Summit, gathering at the Grand Palais
-
9.30am ONS stats on UK public service productivity
-
2pm: Christine Lagarde speaking in European Parliament plenary debate on ECB Annual Report 2023
