American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Will Trump’s tariff plans impact global steel trade?

by admin February 10, 2025
February 10, 2025
Will Trump’s tariff plans impact global steel trade?

Share prices of Asian metal producers fell on Monday due to US President Donald Trump’s plan to impose a new 25% tariff on all steel and aluminium imports into the US, Reuters reported. 

The tariffs threaten to disrupt global trade flows for these metals.

The tariffs, which Trump said would be announced on Monday in addition to existing duties, triggered caution from steelmakers in Asia. 

Possible impact of tariffs on steelmakers

Steelmakers have warned about the effect on prices, profitability, and volumes and raised broader concerns that it could escalate inflation and impede economic activity, according to the report.

The US government and American Iron and Steel Institute data reveal that Canada is the primary source of imported aluminium, as well as steel. 

The other major sources of steel imports into the US are Brazil, Mexico, South Korea, and Vietnam.

The South Korean industry ministry convened an emergency meeting with steelmakers in Seoul on Monday to discuss strategies to mitigate the potential impact of tariffs.

An official at Hyundai Steel told Reuters:

We are concerned that the potential change would lead to export price hikes and reduction in the 70% quota volumes.

The annual quota of duty-free steel that South Korea can ship to the US is equivalent to 70% of the average volume shipped between 2015 and 2017.

This was agreed upon during the first Trump administration.

Previously, Hyundai Steel had announced it was thinking of establishing a new steel plant in the US to mitigate the effect of potential Trump tariffs.

The company supplies steel to Hyundai and Kia’s car plants in the US.

Shares of Asian steelmakers fall

Amid a widespread decline in South Korean steelmakers, Hyundai Steel’s shares dropped nearly 2.9%.

An official with Dongkuk Steel told Reuters that the US is a profitable market for the company currently and that the negative impacts from the tariff changes would be unavoidable.

Chu Xinli, an analyst at China Futures, said that higher prices and slower inflows of steel will reduce US demand, according to the report. Steel is used in automaking, appliances, and construction. 

Chu stated that steel that was meant to go to the US will be redirected to other countries and regions, such as the EU and Asian countries, which will change the global steel trading pattern.

Meanwhile, India’s metals index experienced a decline of about 2.5% on Monday, making it the country’s worst-performing sector on that day.

Risks to demand

The tariffs could have extensive consequences on demand patterns. 

Daniel Hynes, senior commodity strategist at ANZ in Sydney was quoted as saying by Reuters:

I suspect US manufacturers will have to pay higher prices as a result of these 25% tariffs. Its import reliance is high, around 40%-45% for aluminium and 12%-15% for steel.

Iron ore futures experienced a decline on Monday due to a combination of factors. Primarily, the looming threat of tariffs triggered a risk-off sentiment among investors, leading to a sell-off in iron ore futures. 

This negative sentiment overshadowed the positive signs of recovering demand for iron ore in China, the world’s largest consumer of the commodity. The potential tariffs created uncertainty in the market, prompting investors to reduce their exposure to iron ore.

In contrast, aluminium futures saw a slight increase. This uptick was attributed to concerns about the potential tightening of supply in the aluminium market. 

Analysts suggested that disruptions or constraints in the supply chain could lead to a shortage of aluminium, driving up its price, according to the report. 

This concern outweighed any negative impact from the risk-off sentiment affecting the broader commodities market.

Australia’s trade minister argued on Monday that their steel and aluminum exports to the US should be exempt from Trump’s tariffs, as they support American jobs and are important to shared defense interests. 

However, shares of Australia’s BlueScope Steel rose to a more than two-month high on Monday, due to expectations that its US business would benefit from the tariffs.

The post Will Trump’s tariff plans impact global steel trade? appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Hims & Hers stock price target according to the C&H pattern
next post
Ferrari stock price forms a rare bullish pattern, but risks remain

Related Posts

Walgreens plans store closures as CEO says consumers...

June 29, 2024

China’s economy grows at targeted 5% in 2024,...

January 17, 2025

TSMC Q3 earnings beat forecast with AI chip...

October 17, 2024

Long BMRN: BioMarin Q3 Earnings Deliver 28% Revenue...

December 5, 2024

Trump, jobs, and the Fed: navigating a pivotal...

December 31, 2024

Starbucks strike to escalate to 300 stores as...

December 24, 2024

Coinbase becomes Ethereum’s largest node operator, controlling 11.42%...

March 20, 2025

Pending home sales in April slump to lowest...

June 2, 2024

VAT stock: This Swiss semiconductor company could turn...

September 10, 2024

Apple loses top phonemaker spot to Samsung as...

April 17, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,012)
    • Investing (2,455)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved