According to foreign news on February 10, it is reported that the new US President said on the 9th local time that he will announce on the 10th that new tariffs of 25% will be imposed on all steel and aluminum imported into the United States. The new tariffs will reportedly be stacked on top of existing metal tariffs, marking another "major escalation" in its trade policy reforms.
He also said he would announce reciprocal tariffs on Tuesday or Wednesday and planned to "take effect immediately."
Metals producers in Asia came under pressure after the announcement on fears that new U.S. tariffs would cause disruptions to metals trade flows.
Analysts said Asian steelmakers' prices, profitability and output would be affected by the new U.S. tariffs. At the same time, market participants are also worried that U.S. tariffs will lead to higher inflation in the United States and drag down economic growth.
Currently, Canada, Brazil, Mexico, South Korea and Vietnam are the largest sources of steel imports to the United States. Canada is the largest source of imported aluminum to the United States.
South Korea's industry ministry said on Monday it had called an emergency meeting of steelmakers to discuss responses to potential U.S. tariffs.
A South Korean steelmaker said the new US tariffs would affect the price of its steel exports and could cut its steel exports by up to 70%.
Data show that in 2025-17, 70 percent of South Korea's steel exports to the United States were achieved through duty-free import quotas.
Another South Korean steel producer said that the negative impact of the US tariff policy is inevitable.
The United States is now a profitable export market for the company.
As import prices rise, U.S. consumer demand is expected to fall, as are U.S. imports of steel, which is widely used in auto manufacturing, furniture and construction, an analyst said.
"Metals (steel and aluminium) previously sold to the US will be redirected to other countries or regions, such as Europe and Asia."
"We believe U.S. manufacturers will be forced to bear higher prices as a result of the 25 percent tariff, as the U.S. currently imports 40 to 45 percent of its aluminum demand and 12 to 15 percent of its steel consumption," ANZ analyst Daniel Hynes said in a note.
Iron ore futures fell on Monday as the threat of tariffs sparked risk aversion despite evidence of recovering demand from major buyer China, while aluminium edged up on concerns that supply could tighten.
Kyle Rodda, senior financial markets analyst at Capital.com, said, "Right now we're seeing signs that this could put some upward pressure on prices in the near term, just because of supply factors." One of the effects of such tariffs is to depress global economic activity."
Australia's trade minister said his country's exports of steel and aluminum to the United States created "well-paying American jobs" and urged the U.S. government to grant exemptions from proposed steel and aluminum tariffs.
Charu Chanana, chief investment strategist at Saxo Bank in Singapore, said slowing demand could offset the potential inflationary impact of the tariffs.
"The bigger concern is uncertainty and the shift to a more protectionist world."
