Stock futures fell, gold reached a new high, and the euro slid against the dollar amid Trump's renewed tariffs on two major industrial metals in Tuesday's Asian session. Risk-aversion sentiment may ripple through the European markets as a trade war widens.
The European Union (EU) said in a statement before the order became official that it would not hesitate to retaliate if the US imposed the new tariffs. The EU, particularly Germany, is a major steel exporter to the US. In Trump's first term, the EU responded with tariffs of €2.8 billion on US goods. On Monday, China's retaliatory tariffs on the US goods have also taken effect.
US President Donald Trump signed an executive order to impose 25% tariffs on steel and aluminum imports, effective from 4 March. The widespread levies on the two major manufacturing materials will apply to all the US trading partners, including the top importers Mexico and Canada.
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