U.S.-Japan trade pact; Alphabet, Tesla to report - what’s moving markets
Investing.com -- Shares in major Chinese steelmakers took a hit on Tuesday, following an announcement by U.S. President Donald Trump of increased tariffs on steel and aluminum imports.
The decision, which raises tariffs to a flat 25% with no exceptions or exemptions, is intended to support domestic industries but also raises the potential for an escalating trade war.
Steel companies affected by the announcement include Baoshan Iron and Steel, HBIS Co, Angang Steel, Hunan Valin Steel Co, Shandong Iron and Steel Co, and Jiangsu Shagang Co. These companies saw their shares drop between 0.3% and 2.84%.
Steel prices on the Shanghai Futures Exchange also experienced a decrease, with prices falling more than 1% during the morning trading session.
The new tariffs have raised concerns over the future of China’s steel exports this year. Despite the fact that the impact on direct Chinese steel exports to the U.S. is relatively small due to their minor share of the trade flows, the uncertainty created by the tariffs is causing concerns.
In 2020, China’s direct steel exports to the U.S. were 890,000 metric tons, which is only 0.8% of its total exports. The country’s total exports reached a nine-year high at 110.72 million tons last year, according to customs data.
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