US President Donald Trump announced a doubling of tariffs on imported steel and aluminum to 50%, effective June 4, causing US prices for these metals to jump and shares of foreign steelmakers to drop. This move intensifies a global trade war, following Trump's accusation that China violated a trade agreement. While some experts are skeptical about the tariffs' full implementation, the uncertainty and rising prices are expected to dampen industrial activity and impact European and Asian exporters.
U.S. aluminum, steel prices jump while shares drop on Trump’s 50% tariff announcement
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TL;DR: Key points with love ❤️US President Donald Trump announced a doubling of tariffs on imported steel and aluminum to 50%, effective June 4, causing US prices for these metals to jump and shares of foreign steelmakers to drop. This move intensifies a global trade war, following Trump's accusation that China violated a trade agreement. While some experts are skeptical about the tariffs' full implementation, the uncertainty and rising prices are expected to dampen industrial activity and impact European and Asian exporters.
Trending- 1 January (2025): Trump returned to office, imposed earlier tariffs.
- 2 March 12 (2025): 25% tariffs on most steel and aluminum imports went into effect.
- 3 Late April (2025): Seoul agreed to craft a trade package.
- 4 Friday (2025-05-30): Trump announced doubling tariffs to 50%.
- 5 Monday (2025-06-02): US aluminum and steel prices jumped, shares dropped.
- 6 Tuesday (2025-06-03): South Korean elections (context for trade talks).
- 7 June 4 (2025): New 50% tariffs take effect.
- 8 July (2025): End of 90-day pause on reciprocal tariffs.
- 9 2029: Hyundai Steel factory in Louisiana expected to open.
- Increased prices for steel and aluminum in the US
- Decreased shares for foreign steelmakers
- Dampened US steel demand from manufacturing
- Potential rerouting of global trade flows
- Severe blow to European industry
- Burden on Korean steel exporters
- Detrimental impact on Indian aluminum exports
- Intensified global trade war
What: US President Donald Trump announced a 50% tariff increase on imported steel and aluminum, effective June 4, leading to a surge in US prices for these metals and a drop in shares of foreign steelmakers.
When: Friday (Trump announced tariffs); Monday (prices jumped, shares dropped); June 4 (tariffs take effect); January (Trump returned to office, imposed earlier tariffs); March 12 (earlier 25% tariffs went into effect); late April (Seoul agreed to trade package); July (end of 90-day pause); Tuesday (South Korean elections); 2024 (US imported 26.2 million tons of steel); 2029 (Hyundai Steel factory opening).
Where: United States; China; European Union (EU); Germany; South Korea; Canada; Mexico; Brazil; Vietnam; India; Louisiana.
Why: Trump's stated reason is to protect domestic industries from 'subsidized foreign producers' and to address China's alleged violation of a trade agreement.
How: Trump announced the new tariffs, which will double existing levies. This policy decision directly impacts market prices and company shares.