Steel and aluminum prices in the United States (US) continued to soar after President Donald Trump on Friday announced a 50% tariff doubling on imports of the two metals, which will take effect on June 4.
The surprise move was seen as Trump's latest tactic in a rekindled trade war, especially after he accused China of violating the Geneva agreement.
The immediate impact?
Physical aluminum prices rose 54%, US hot-rolled steel jumped 7.4%, and copper also hit a two-month high as investors expected tariffs to follow.
Shares of US steelmakers such as Nucor and Steel Dynamics jumped as much as 24%, while European companies such as Salzgitter plunged.
China quickly denounced Washington's accusations as "false and unreasonable", and warned of taking "strong countermeasures" if the US did not withdraw the action.
Beijing has also put pressure on President Donald Trump as he has yet to confirm a diplomatic call between him and President Xi Jinping that is expected to ease tensions.
But amid the tensions, China is seen preparing its strategic weapon, rare earths — a critical raw material in chip manufacturing, electric vehicles and military systems that the US relies heavily on for supplies from China.
Global markets have also been shaken. Hong Kong stocks fell 2%, while the US dollar fell to its lowest level since 2023.
Now, the world is waiting — will this conflict end with peace talks? Or, in this era of modern economic warfare, will “peace” be just a fading diplomatic nostalgia?
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