Trump Tariffs: Steel and Aluminum to be Impacted the Most
Citigroup observed that Canada and Mexico happens to be the topmost suppliers of these metals to the U.S.
SEATTLE (Scrap Monster): Citigroup analysts predict that President-elect Donald Trump's tariff threats will have the greatest effect on steel and aluminum. Recall that Trump threatened to impose 25% tariffs on all products coming from Mexico and Canada.
According to Citigroup, the United States' major suppliers of these metals are Canada and Mexico. Nearly 70% of the aluminum used in the United States is imported, with 60% coming from Canada. Steel imports constitute around one-fourth of the total U.S. supply, with Canada and Mexico accounting for nearly 25% and 15% of the amount respectively.
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According to the Citigroup analysts' research note released yesterday, a 25% tariff declared by Trump would raise the price of steel by $100 to $150 per short ton. Additionally, it might nearly treble the U.S. premium over LME for aluminum, which would be very advantageous for American domestic aluminum smelters.
Claudia Sheinbaum, the president of Mexico, stated that the nation would impose its own taxes in the meantime. Additionally, in response to Trump's tariff threat, Canadian Prime Minister Justin Trudeau has scheduled an emergency meeting that could include a proposal for retaliatory tariffs.
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