American Tariff effect on ASX

Well - that was out of the blue for most of us ... except from one of Donnie's mates who is under investigation for, only the week before the announcement, selling $30mil worth of stock in a manufacturing company reliant on imported steel.

Does anyone believe the declaration will come to fruition considering the manufacturing industry in America employs 12mil - most reliant on cheaper imported steel - whereas the steel industry only employs around 150,000

Now the tit for tat tariff threat wars have begun - especially with Europe and China.

Maybe I bought my FMG to early - still waiting for BHP to drop another couple of dollars before buying.

 

US stock market already taking a hit, I expect we will see this happen to ASX as well??


Effecting global markets at the moment.

fox2now.com/2018/03/02/heres-why-trumps-tariffs-spooked-markets-around-the-world/


www.news.com.au/finance/business/manufacturing/donald-trumps-call-on-steel-aluminium-tariffs-could-hit-australian-companies-including-bluescope-steel/news-story/6373a233e9fa260faefcefa17d69c9ee

 

Awesome move by Trump. And unlike the immigration ban they can't just get a judge to overthrow the presidents order.

Besides why is it such a big deal? Euro region has recently slapped tariffs on Chinese cheap steel as well as tariffs on many other things.

This will be bad for iron ore and coal miners for sure in the short term.

Anyways still a week away from it becoming official, we'll see.

 

Let me guess.... because Trump did it....hehe....

I expect this thread to be very mellow ....NOT

 

Hard to know how this is going to go. Could be brilliant, or very bad, for both the US (could hurt manufacturers that rely on imported steel/aluminium) and Australia (we can send our steel and aluminium to other countries but may lose some of US market). I don't think we will see a rising AUD this week but we'll see.

 

could also impact on effect of end product

 

The one small option the USA has is a powerfull dynamic economy allowing policymakers more flexibility in dealing with a economic slow down,unlike in Australia and use full to remember when comparing one's debt burden to another..
This new law will in some ways MAY put countries that deal with the US on life support ,as it's not the size of the debt,but their ability to manage it..

 

It's a big deal because - although it appears to be good for the steelmakers in the USA in terms of job security - the much vaster manufacturing industry, reliant on cheaper imported steel to make their products at a cost effective price, will be savagely hit with high raw material costs.

Trump’s steel and aluminum tariffs have angered nearly every US industry

 

Looks like Canada is top on the list,China well placed ..

 

US steelmakers have already admitted they can produce enough steel for the domestic market, especially to cover the 90% imported aluminum - and "steel" ain't simply "steel" ... sheet steel is not the same as pipe steel so production can't simply be ramped up ... anyhow, interesting few weeks to come.

Why steel and aluminum tariffs matter to the U.S. economy

 

Let the games begin..... China retaliates