US President Donald Trump has declared his intention to impose sweeping tariffs on steel and aluminum, with potentially wide-ranging implications for the global economy, the worldwide trading system and cross-border commerce. Steeper tariffs increase the risk of retaliation from trading partners as well as unintended negative effects on the profits of US industries that are heavy steel consumers.
Trump said details are still being worked out, but he assured executives from ArcelorMittal, US Steel, Nucor, Evraz, JW Aluminum, Century Aluminum, AK Steel, Timken Steel, United Aluminum and others, that the tariffs would be imposed. Such exemptions could be granted based on an overriding economic or security interest of the United States, which could include these countries' willingness to work with the United States to address global excess capacity and other industry challenges.
US President Donald Trump said Thursday he plans to impose a 25 percent tariff on steel imports next week, a move that could affect South Korean steelmakers. "In the immediate to longer run it's probably seen as a step towards trade wars (and) retaliation".
The tariffs - 25 percent on steel and 10 percent on aluminum - cover two materials that are the lifeblood of the construction and manufacturing sectors.
The Standard & Poor's 500 index tumbled 36.16 points, or 1.3 percent, to 2,677.67. Sony lost 1.11 percent and SoftBank Group tumbled 3.14 percent.
Investors were very anxious that the tariffs would trigger a global trade war. Apple, the most valuable US company, got 63 percent of its sales from outside the United States in its latest fiscal year.
He said he welcomed action whichis "long overdue for shuttered steel plants across OH and steelworkers who live in fear that their jobs will be the next victims of Chinese cheating".
Juncker is vowing that "the European Union will react firmly and commensurately to defend our interests".
Steel and aluminum stocks listed on the mainland recorded steep losses as markets reacted to news about US tariffs, with Baoshan Steel falling 3.3 percent. "Meanwhile, our members use a lot of steel now", Fiore said.
"It is likely to lead to job losses across the beer industry". Heavy equipment maker Caterpillar fell two per cent and aerospace giant Boeing gave back four per cent.
Trade tensions between the United States and China have risen since Trump took office in 2017 and the administration is also pushing on what it regards as forced technology transfers to China.
On Wall Street, many investors headed for the exits Thursday.
Aluminum producer Century Aluminum Co's shares rose 3.3 percent, while Alcoa Corp edged up 0.2 percent. The Dow had been up more than 150 points earlier in the session.
"Nothing is suggesting to me that wage inflation is at a point of accelerating", he added.
"Everyone's afraid of these protection-type of events, like this announcement, that can only lead to a trade war with other countries", said Allan Small, a senior investment adviser at HollisWealth. Beer, soft drinks, candy, canned soup and even pharmaceuticals rely on aluminum for cans, wrappers and blister packs, and many electronics include the metal.
FED SPEAK: Powell's testimony before the Senate Finance Committee was highly anticipated, as worries about the possibility of much higher interest rates have been at the center of the market's troubles over the last month. The Shanghai composite slipped 0.32 percent and the Shenzhen composite edged lower by 0.44 percent. The company also said its chief financial officer will depart.
Dental products supplier Patterson Companies plunged 23 percent in the first few minutes of trading Thursday after issuing weak quarterly results. Benchmark U.S. crude fell 65 cents to settle at $60.99 per barrel. Brent crude, the global standard, lost 90 cents to $63.83 a barrel.