President Donald Trump's tariff president (some were blackmailed, others were executed, but he pushed down several currencies that bothered the global market.
However, some things are becoming more expensive, especially on grocery shelves.
And gold for those visiting jewellers.
Why did the prices of yellow metals skyrocket on recent days, as Trump's 25% steel and aluminum imports kick this week, and why did its value rise during periods of uncertainty? Find out whether other assets are also making profits. Trump's confusion.
What happened to the gold price?
Following Trump's economic movements and rhetoric, gold rose to record highs. Exports say this points to a desire for safe assets.
On Monday, Gold went above $2,900 per ounce for the first time. Profits were extended on Tuesday, reaching a new peak of over $2,942 per ounce.
Spot Gold rose to $2,916.37 per ounce at 07:01 GMT after reaching its previous $2,942.70.
Why is gold considered a safe asset?
People have traded or used gold as currency for thousands of years, which is considered by investors as a safe haven in times of uncertainty.
Unlike money, which can be devalued due to inflation or overprinting, gold is a rare resource used in concrete things, and therefore tends to retain value over time. Also, unlike country-specific currencies, it is universally usable.
“Gold is a highly liquid asset, not anyone's fault, has no credit risk and has historically maintained its value,” notes the World Gold Council (WGC).
When has gold prices skyrocketed in the past?
History has contributed to the public's perception that gold is a safe asset.
In early 2008, when gold prices first surged above $1,000 per ounce, the US housing crisis hit. Gold prices temporarily fell before they stabilized and then began to rise. By September 2011, gold had reached a record high of around $1,900 per ounce as it was tackling the aftermath of its financial meltdown.
Recently, Russia's full-scale invasion of Ukraine in February 2022 has created uncertainty in the global market, contributing to rising oil and commodity prices, further increasing inflation concerns. By March of that year, gold prices had skyrocketed from the previous $1,910 to $2,070 per ounce.
What is the trigger this time?
Trump signed the declaration late Monday, reviving the 25% tariff rate on steel from all countries and increasing the tariff on aluminum to 25% from the previous 10%.
He also eliminated tariff exclusions for both metals and products that use both national exceptions and quota transactions.
The US imported about $49 billion worth of steel and aluminum in 2024, according to government data.
“Our country needs to be made in the US, not in the foreign country. Trump has set the language he previously used to neighboring Canada and Mexico in the threat of imposing tariffs on imports from these countries. We need to reflect and create to protect the future of our country.
Steel and aluminum tariffs apply to Canada and Mexico, the leading suppliers of these products, but Trump suspends plans to impose a broad 25% tariff on all imports from these two neighbors. I did. However, he imposes a 10% tariff on Chinese imports.
“It's time for our great industry to return to America. I want them back to America. This is the first of many.”
Where does the US get steel and aluminum?
According to the US International Trade Agency, the largest supplier of steel in the United States is Canada (the largest exporter of aluminum), followed by Mexico, Brazil, South Korea, Germany and Japan.
Other major aluminum suppliers include the United Arab Emirates, Korea and China.
The US imports about a quarter of the steel it uses.
How did the world react?
The nation and experts point to the economic volatility caused by Trump's actions and words.
Canadian Prime Minister Justin Trudeau, a bystander at the Artificial Intelligence (AI) Summit in Paris, called the tariffs “completely unfair.”
“We are the closest allies of the US. Our economy is integrated. Canada's steel and aluminum are used in many major American industries, including defense, shipbuilding, manufacturing, energy, and automobiles. ” he said, adding that Canada's response is “solid and clear.”
“We stand up to Canadian workers. We stand up to Canadian industry,” he said.
Asia is also worried. China was fighting back against Trump's previous tariffs by adding its own tariffs to the US import range, including coal and crude oil.
Katrinayu, Al Jazeera, reported from Beijing, says these Chinese tariffs are warnings to Washington.
Gabriel Wildau, senior vice president of global business advisory firm Teneo, told Al Jazeera that these latest tariffs are likely not to launch a trade war, but it is a step in that direction.
“While US trading partners in Europe and Asia are virtually confident of retaliation, this retaliation is likely to take the form of comparable, narrow-sector tariffs,” he said.
What other economic changes have happened?
Trump's tariffs, along with tax cuts and deregulation, fear rekindling inflation and forcing the US Federal Reserve to continue to raise interest rates.
China's steelmaker stocks fell from 0.145% to 2.62%, but iron ore futures, a major steelmaking ingredient, will outweigh Australia's weather-related supply disruption, causing concerns to be reduced As the trade increased earlier due to lower trade.
Asian markets struggled Tuesday as traders are nervous about Donald Trump's next move.
