US markets fall hard after Trump hits China and others with big tariffs on steel and aluminium
Trump announced that he would sign off on the tariffs on all countries next week - potentially starting a trade war with China
US markets dropped hard after US President Donald Trump confirmed that he will sign off on hefty tariffs for steel and aluminium products from other countries - including China - next week.
Trump said on Thursday that he would place a 25 per cent tariff on steel and 10 per cent tariff on aluminium product imports, which he says are harming US producers.
The Dow and S&P 500 registered a third straight day of more than 1 percent declines after Trump’s announcement raised concern about higher prices and a trade war. The declines put the Dow into negative territory for the year and drove the Cboe Volatility Index to its highest close since February 13, denting the market’s recent recovery from deep losses in early February.
Shares of auto makers and other big consumers of steel and aluminum were among the big losers. General Motors Co lost 4 per cent, while Ford Motor Co was down 3 per cent
Trump made the announcement during a meeting at the White House with producers of the two metals, who would be among the principal beneficiaries of any new barriers to competing imports.
“You’re going to have protection for the first time in a long time,” he told the gathering of metals industry executives.