President Donald Trump, speaking to reporters aboard Air Force One, announced the implementation of tariffs on metal imports from all countries, though he did not specify the timeline for enforcement. Additionally, he stated that reciprocal tariffs on countries taxing U.S. imports would be announced later in the week, with implementation following soon after.
Trump’s tariff plans have raised concerns among steel and aluminum buyers, many of whom expected more time to prepare. During his first term, some oil companies received exemptions from metal tariffs. While previous tariff delays were granted to Mexico and Canada due to border security negotiations, it remains unclear whether the new tariffs will apply to these key U.S. trade partners.
Beyond metals, Trump has signaled potential tariffs on pharmaceuticals, oil, semiconductors, and imports from the European Union. Markets are closely monitoring trade developments, particularly regarding U.S.-China relations. A call between Trump and Chinese President Xi Jinping is expected soon, as the U.S. re-evaluates the 2020 Phase One trade agreement. Trump’s stance fluctuates between imposing strict measures on Beijing and seeking collaboration, particularly in addressing the Russia-Ukraine conflict and the ownership structure of TikTok.
The administration has positioned Mexico and Canada’s commitments to border security as a policy success. Meanwhile, in the steel sector, Trump has opposed Japanese firm Nippon Steel’s $14.1 billion bid to acquire U.S. Steel Corp., a deal previously blocked by President Joe Biden. Instead, Trump has indicated that Nippon Steel may invest in U.S. Steel without taking a majority stake.
These developments underscore ongoing shifts in U.S. trade policy, with potential implications for global supply chains and market stability.
Anish Jagdish Parashar
Securities Analyst
Disclaimer: Content is for educational purposes only. For investment decisions consult your financial advisor.
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