SINGAPORE (Reuters) – U.S. President Donald Trump stated on Sunday he’ll introduce new 25% tariffs on all metal and aluminum imports into the U.S., on high of present metals duties. He additionally stated he’ll announce reciprocal tariffs on Tuesday or Wednesday.
Shares of steelmakers in Asia largely fell on Monday, save for these with operations in the USA. The greenback rose and U.S. Treasury yields ticked greater.
Here’s what market contributors are saying:
DAMIAN ROONEY, INSTITUTIONAL SALES DIRECTOR, ARGONAUT, PERTH:
“Trump and tariffs inflicting an enormous quantity of uncertainty, and nobody likes that!
“The market…is attempting to digest Trump and the economic system.”
CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE
“These threats seem authentic and inside Trump’s energy to implement on the idea of nationwide safety. The outdated playbook cannot be used as a result of China is not a big provider of metal to the U.S. after the 2018 tariffs. As an alternative, the influence will probably be extra pronounced on international locations like Canada, Mexico, the EU, Japan, South Korea, Taiwan, and Brazil.
“The instant concern, nevertheless, won’t be inflation, as there might be counter results corresponding to demand slowdown. The larger concern is the uncertainty and the shift in direction of a extra protectionist world.”
TONY SYCAMORE, MARKET ANALYST, IG, SYDNEY
“It has been a really completely different response. This week began like final week did – we have seen tariff headlines, however the response has been considerably completely different throughout asset courses… U.S. fairness futures are buying and selling greater, and actually, even the ASX 200 has bounced considerably off its early lows. The Aussie greenback continues to be struggling slightly bit, however my really feel is that… after the whipsaw experience we noticed final week, there’s going to be much less of a temptation now to shoot first and ask questions later.”
DANIEL HYNES, SENIOR COMMODITY STRATEGIST, ANZ, SYDNEY
“I think U.S. producers must put on greater costs on account of these 25% tariffs. Its import reliance is excessive, round 40-45% for aluminium and 12-15% for metal.
“I think we see regional pricing react first. U.S. costs are prone to be huge greater, with merchants anxious to safe steel earlier than the tariffs are utilized. “
(Reporting by Asia markets group; Modifying by Lincoln Feast.)
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