Price spikes, demand fears cast shadow over metal markets amid Trump’s 25% tariffs
Markets are ‘in the dark’ as key details of Trump’s tariffs on steel and aluminium imports are still pending; experts fear heightened volatility
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REACTIONS in the metals markets to US President Donald Trump’s new 25 per cent tariffs on steel and aluminium imports may be muted so far, but it belies the underlying tension. With markets on edge and price spikes almost certain, experts warn that the real concern is potential demand destruction.
“The market has reacted with caution. We’re expecting it to be more impactful on premiums rather than price. The long-term implications are unknown, with potential for demand destruction,” said Marex senior metals market trader Tommy Bain.
He is referring to the fact that while the tariffs may not immediately affect the base price of metals, they could influence premiums – the extra cost above the base price that traders pay for specific types of metals, which can be influenced by factors such as supply disruptions.
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