Recently, the US government suddenly announced that it will levy 25% and 10% import tariffs on related products such as steel and aluminum from February 8th, without additional explanation.
After the news spread, causing the market chaotic, and at present, it was difficult to determine whether the measure will impact the downstream steel industry.
However, market participants believed that the import tariff will have little impact on the steel parts industry related to automobiles and agricultural machinery as most parts manufacturers were located in the US and Canada.
In addition, Japanese and German automakers were also less likely to be hit by tariffs since such industries have already established sound supply chains in North America, eliminating the need to import parts.
As for the aluminum industry, as the final product list has not yet been announced, it was still impossible to judge the product category that will be impacted. Local traders considered that this tariff measure will benefit domestic casting factories, but the actual extent remained uncertain.
US' steel & aluminum import tariffs trigger speculation
3 Feb 2020 15:36 reported by Alston Tsai
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