U.S. President Donald Trump has announced new 25% tariffs on all steel and aluminum imports, escalating concerns over a global trade war. This move follows existing metal duties and raises the possibility of retaliatory measures from other countries.
Market Reactions
? Asian steelmaker stocks fell, except for those with U.S. operations.? The U.S. dollar strengthened, while Treasury yields edged higher.? Investors fear increased volatility, especially if China or other nations retaliate.
Expert Opinions on the Tariff Impact
? Vasu Menon (OCBC, Singapore)
The move could be a negotiation tactic, but if enforced, it hurts U.S. manufacturers reliant on Canadian & Mexican steel.
Investors should brace for volatility as the trade war escalates.
? Kyle Rodda (Capital.com, Melbourne)
Short-term: Inflationary pressure due to costlier imports.
Long-term: A drag on economic growth as trade tensions escalate.
If China retaliates, markets could see a downturn.
Investment Strategy in a Volatile Market
Investors should monitor economic indicators and sector performance amid escalating trade tensions.
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