US Imposes Tariffs on Steel and Aluminum from EU, Canada, Mexico
$DIA, $SPY, $QQQ, $VXX
The US stock market returned to negative territory for the week Thursday, giving back much of Wednesday’s high bounce, as investors digested tariff-related headlines and looked ahead to Friday’s release of the Employment Situation report for May.
Thursday, The Trump Administration’s announcement that it will impose tariffs on steel and aluminum imports from Europe, Mexico and Canada drew inflamed trade tensions.
The Administration’s move could inflate prices for US consumers and companies and heighten uncertainty for businesses and investors across the globe.
Commerce Secretary Wilbur Ross said the tariffs, 25% on imported steel and 10% on aluminum take effect Friday. In imposing them, the Administration is following through on a pledge to do so after having earlier granted exemptions to the affected nations to try to buy time for negotiations.
The US tariffs could complicate The Trump Administration’s separate fight over Beijing’s tactics to overtake US technological supremacy and negotiations to rewrite the North American Free Trade Agreement (NAFTA)
US President Donald Trump had announced the tariffs in March, saying they were necessary to protect the United States from unfair competition and thereby bolster national security.
The Administration has argued that foreign production of steel and aluminum has driven down prices and hurt US producers, creating what the Commerce Department has called a national security threat.
The US tariffs may widen a rift with friendly trading partners, and result in actions and counteractions that could bring higher costs and reduced access to Key goods and materials.
The EU President, Jean-Claude Juncker, said President Trump’s action Thursday amounted to trade protectionism and that Europe would respond with countermeasures.
In Canada, Prime Minister Justin Trudeau said: “These tariffs are totally unacceptable.”
“Canada buys more American steel than any other country in the world, half of US steel exports”, PM Trudeau added. “Canada is a secure supplier of aluminum and steel to the US defense industry, putting aluminum in American planes and steel in American tanks. That Canada could be considered a national security threat to the United States is inconceivable.” He said Canada would pursue retaliatory penalties on a range of US goods.
Mexico said it would penalize US imports including pork bellies, apples, grapes, cheeses and flat steel.
Financial markets reacted on concerns about the disputes among trading partners.
Thursday, the major US stock market indexes finished at: DJIA -251.94 at 24415.84, NAS Comp -20.34 at 7442.11, S&P 500 -18.74 at 2705.27
Volume: Trade on the NYSE came in at 1.37-B/shares exchanged
- NAS Comp +7.8% YTD
- Russell 2000 +6.5% YTD
- S&P 500 +1.2% YTD
- DJIA -1.2% YTD
HeffX-LTN’s US Major Market Indexes Technical Analysis
Latest posts by Paul Ebeling (see all)
- Last Week in the Crypto World - June 23, 2018
- Justify Parades at Santa Anita! - June 23, 2018
- F1: Lewis Hamilton on the Pole for the French Grand Prix - June 23, 2018