Tariff Tremors: Asian Steelmakers Reel Under Trump's Tax Hammer

New U.S. tariffs double on imported steel and aluminium, impacting major exporters like South Korea and Vietnam, amplifying trade tensions. Shares in Asian steel companies dropped sharply, while U.S. steelmakers saw gains. Trade discussions continue as affected nations seek to minimize economic impact amid shifting U.S. policies.

Shares of Asian steelmakers, particularly in South Korea and Vietnam, experienced significant declines following U.S. President Donald Trump's announcement to double tariffs on imported steel and aluminium to 50% starting June 4. This move intensified global trade tensions as the U.S. accuses China of violating trade agreements.

Industry experts caution that the steep increase could wreak havoc on major exporters to the U.S., though there remains hope for policy reversals. "There's inherent uncertainty with the Trump administration's frequent tariff changes," remarked Chelsea Ye, a senior analyst at McCloskey metals research firm.

South Korea, the fourth-largest steel exporter to the U.S., held an emergency meeting to discuss the 50% tariff's impact, while U.S. steelmakers saw stock rises. Trade talks persist as South Korea, alongside other affected countries, negotiate to lessen the economic blow.

(With inputs from agencies.)