Gold reached record highs and aluminum prices rose after Donald Trump said he would impose a new 25% tariff on steel and aluminum imports into the US and rattle the financial markets.
Gold spot prices rose more than 1% on 1 ounce on Monday morning to $2,896 (£2,336), surpassing Friday's record high as investors sprinted through safe shelters for money I did. Gold has been rising in recent weeks amid concerns over the impact of Trump's policies. After finishing 2024 at $2,623 a ounce, it won 10% since the beginning of the year.
Aluminum prices have also risen as investors fear that tariffs could lead to supply issues and could be hit by economic growth. The three-month aluminum contract at the London Metal Exchange rose 0.3% per tonne to $2,635 (£2,122).
The US president spoke with reporters on Air Force 1 and said it would be effective almost immediately to announce mutual tariffs on Tuesday or Wednesday, matching the tariff rates imposed by other countries. . “In very simple terms, if they charge us, we charge them,” Trump said.
According to data from the government and the US Steel Institute, Canada, Brazil, Mexico, South Korea and Vietnam are the largest sellers of steel to the US, while Canada is the leading supplier of imported aluminum.
“As a result of these 25% tariffs, I think US manufacturers need to wear higher prices,” said Daniel Hines, senior commodity strategist at ANZ Bank in Sydney.
Jeffries analysts Chloe Lemarie and Ben Brown said tariffs on new metals are likely less destructive than leaving Russian titanium. For civil aerospace supply chains.
In South Korea, the Ministry of Industry said Monday it held an emergency meeting with steel manufacturers in Seoul to discuss measures to minimize the impact of potential tariffs. Shares in Hyundai Steel, the country's oldest steelmaking company, fell by 2.9%.
The company, which supplies steel to Hyundai and Kia auto plants in the US, has previously said it is considering building a new steel plant in the US.
Australia's ministers will promote US tariff exemptions on steel and aluminum imports. Prime Minister Anthony Albanese said he would insist on “free and fair trade” with the United States in future calls with Trump.
The dollar rose 0.2% against a basket of major currencies on Monday, bringing higher yields (effectively interest rates) on US government bonds known as finance.
Trump said Sunday that his administration is considering paying US Treasury debts for possible fraud, suggesting that the country may have less debt than thought. According to the US Treasury Department, the US has $3.6 billion in public debt, which is more than 120% of its GDP.
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Trump said administrative authorities, who had looked at payment records to identify unnecessary spending, had turned their attention to paying debts.
“We're even seeing treasures,” Trump said. “There could be a problem. You're reading about it and at the Treasury, that could be an interesting issue.”
He added: “Many of them may not count. In other words, some of the things we found are very fraudulent. So we may have less debt than we thought. yeah.”
It was not clear whether Trump was referring to debt services or other government payments made by the Treasury Department.
According to an independent budget watchdog, Trump's proposed tax cuts would add debt to trillions of dollars.
