U.S. President Donald Trump announced on Sunday that he would impose a new round of 25% tariffs on all steel and aluminum imports into the United States, in addition to existing metal duties. He also indicated that reciprocal tariffs would be unveiled on Tuesday or Wednesday.
In response, Asian steelmaker stocks largely declined on Monday, though companies with operations in the U.S. saw a more positive reaction. The U.S. dollar strengthened, and U.S. Treasury yields saw slight increases.
Here are insights from market experts on the unfolding situation:
DAMIAN ROONEY, INSTITUTIONAL SALES DIRECTOR, ARGONAUT, PERTH
“Trump’s tariff moves are creating a lot of uncertainty, and uncertainty is never good for markets. The market is trying to process both Trump’s actions and their broader economic impact.”
CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE
“These tariff threats seem real and within Trump’s powers, especially under the guise of national security. The traditional approach doesn’t apply anymore since China isn’t a major steel supplier to the U.S. post-2018 tariffs. The immediate effect will be felt by countries like Canada, Mexico, the EU, Japan, South Korea, Taiwan, and Brazil. While inflation might not be the primary concern, the real issue is the uncertainty and the shift towards a more protectionist global environment.”
TONY SYCAMORE, MARKET ANALYST, IG, SYDNEY
“There’s been a different market reaction this week compared to previous tariff news. U.S. equity futures are trading higher, and even the ASX 200 has bounced back from early losses. The Aussie dollar is still facing pressure, but after last week’s volatility, there’s less knee-jerk reaction this time around.”
DANIEL HYNES, SENIOR COMMODITY STRATEGIST, ANZ, SYDNE
“I believe U.S. manufacturers will face higher costs due to these 25% tariffs, as the country relies heavily on imports for aluminum (around 40-45%) and steel (12-15%). We will likely see regional price fluctuations first, with U.S. prices rising as traders scramble to secure metal before the tariffs take effect.”
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