[ROLLING ANALYSIS] US President Trump announces "no exceptions or exemptions" steel and aluminium tariffs

US TARIFFS

UPDATE:

Steel and aluminium tariffs: US President Trump signed proclamations to reimpose a 25% tariff on steel and aluminium imports and declared there are no exceptions or exemptions, effective March 12th.
Additional tariffs: Trump said they are looking at tariffs on cars, pharmaceuticals and chips and will hold meetings over the next four weeks, while they will do reciprocal tariffs over the next two days. Trump also commented that tariffs on metals could go higher and he does not mind if other countries retaliate.
Executive orders: President Trump is expected to sign executive orders on Tuesday at 15:00EST/20:00GMT.

HOW MARKETS DIGESTED THE UPDATE: APAC stocks were ultimately mixed (Japan closed). US equity futures gradually retreated. European equity futures were flat/subdued. DXY traded rangebound. 10yr UST futures traded sideways in APAC hours with a modest bearish bias heading into European trade. Crude futures remained afloat. Spot gold extended on record highs, Copper futures pulled back. Bitcoin traded indecisively overnight.

GLOBAL REACTIONS

EU:

European Commission President von der Leyen says unjustified tariffs on the EU will not go unanswered; they will trigger firm and proportionate countermeasures.
EU Trade Ministers are set to hold a video conference on Wednesday after Trump confirmed steel and aluminium tariffs.
EU Trade Commissioner Sefcovic said they are looking into the possibility of stronger trade ties with Gulf-nations. On the US action, said they deeply regret this, it will be fuelling inflation. The latest US measures are lose-lose, but the EU remains committed to a mutually beneficial solution.
Germany Chancellor Scholz aid Europe will respond 'together' to US tariffs.
French Finance Minister Lombard said Europe will answer to US tariff moves as strongly as the position of the US and they are prepared to do whatever is necessary to be balanced, while Lombard added they are ready and noted that the national digital tax is unrelated to the trade war and will not be changed.

UK:

"Britain is not expected to join the EU in retaliating against the US after Donald Trump announced plans to hit steel imports with 25% tariffs", according to Times' Swinford. "Senior govt sources said that retaliatory tariffs would have little impact and would ultimately serve to provoke Trump further".
UK reportedly sought clarity on Trump tariffs in a bid to avoid steel threat and it was also reported that PM Starmer is to meet with US President Trump before the end of February, according to The Telegraph.
UK played down the threat of US President Trump’s steel and aluminium tariffs, while Downing Street refused to say if Britain would retaliate and the industry warned that levies on exports would be ‘devastating’, according to FT.

South Korea:

South Korean acting President said they are to prepare support for firms hit by US tariffs; to discuss response measures with Japan and the EU.
South Korea to respond to US tariffs on steel and aluminium according to pre-arranged plans.
South Korea will seek talks with the US on tariffs to reflect interest of Korean firms.

Australia:

Australian PM Albanese said he had a great conversation with US President Trump and they committed to working constructively to advance Australian and American interests, while he noted that President Trump agreed to consider an exemption for Australia on steel tariffs.

Hong Kong:

Hong Kong said US tariffs are inconsistent with WTO rules and it will file a complaint on US tariffs to the WTO, while it noted the US has completely ignored the city's status as a separate customs territory from China.

China:

No official comments from China. US President Trump said he had spoken to Chinese President Xi since his inauguration but didn't provide further details.

Canada:

Canada's Industry Minister said US tariffs on steel and aluminium are "totally unjustified", while he is consulting with international partners on US steel and aluminium tariffs, as well as noted that the response will be "clear and calibrated".