President Singapore (Reuters) -Donald Trump said on Sunday that it will introduce new 25% tariffs on all steel and aluminum imports to the United States, on top of the existing metals duties. He also said he will issue bilateral tariffs on Tuesday or Wednesday.
Shares of steelmakers in Asia fell mainly on Monday, except those with operations in the United States. The dollar and the US Treasury picked up higher.
Here's what market participants say:
Kelvin Wong, Senior Market Analyst, Oanda, Singapore
“Trade War 2.0 differs in scope and action of Trade War 1.0 in 2018 as it includes more countries … (AC) includes all the main US trading partners who have significant trade surpluses with the US
“Overall, war trade 2.0 can spend the flows of world trade which in turn relieves the prospects of the economic growth of world -rean, which could lead to a stagnation environment.
“Investors and short-term traders are now in flux in locating a playbook as the global economy has not faced a stagnation environment over the last 15 years since the major financial crisis of 2009.”
Vasu Menon, Managing Director, Investment Strategy, OCBC, Singapore
“It is unclear whether Trump's latest steel and aluminum tariffs are a negotiation strategy that can dial on later. After all if implemented it will also hurt the US given its dependence on steel and aluminum has' To import from Canada and Mexico are large suppliers of leading suppliers of large metals to the US
Markets will be ahead and interchangeable with the growing trade war and investors need to go carefully for the time being and a brace for more market excitement. “
Kyle dona, older markets analyst, Capital.com, Melbourne
“It adds to the upcoming price shock from Trump's trade policy. In the short term that is inflation. In the longer run and in the aggregate, it will drag on growth. Now there is a tit-for issue Also -Dynamic that emerges in the world economy as competitors like China react with anti -surveying. “
Tomo Kinoshita, World Market Strategist, Investo Asset Management Japan, Tokyo
“Although the details (of 25% tariff on steel and aluminum) have not been released, considering that the United States imports over $ 100 billion annually for steel and aluminum together, the tariff Additional annual resulting from this new tariff is likely to be approximately $ 25 billion.