Impact of U.S. Tariff Hike on Asian Steelmakers
The U.S. has doubled tariffs on imported steel and aluminium to 50%, impacting major Asian steel exporters like South Korea and Vietnam. This move, part of a larger trade conflict, has led to significant share losses in these countries' steel companies. Industry experts foresee potential tariff reversals.
Shares in South Korean and Vietnamese steel companies experienced a notable decline on Monday following U.S. President Donald Trump's decision to increase tariffs on imported steel and aluminium to 50%. This announcement has intensified an ongoing global trade war.
Steel industry analysts believe the tariff hike will significantly disrupt major exporters, though potential reversals in Trump's trade policies could ultimately lessen the impact. 'Frequent shifts in the Trump administration's tariff policies introduce considerable uncertainty regarding the actual impact,' said Chelsea Ye, a senior analyst at McCloskey.
South Korea is responding to the tariff hike by engaging in trade discussions with Washington to mitigate its effects. Meanwhile, Vietnam reported a 27% drop in steel exports to the U.S. over the first four months of the year, amidst declining shares for its major steel companies.
(With inputs from agencies.)
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