The White House has announced that imports of steel and aluminum will be exempt from the newly imposed tariffs, providing relief for domestic buyers who currently face a 25% tariff on all key metal imports. These metals are essential for various industries, including automotive and appliance manufacturing.
According to a White House briefing, steel and aluminum products already subject to Section 232 tariffs will not be affected by the new tariffs announced by President Trump. Gold and copper are also included in the exemption list. This decision indicates that the government is maintaining policy flexibility in the metals market, a focus of Trump's administration.
Previously, the President had ordered a 25% tariff on all steel and aluminum imports to reignite trade tensions. This policy drove steel prices to their highest in over a year, benefiting steel stocks. However, the construction market's downturn, persistent inflation, and high borrowing costs have weakened steel demand.
Major U.S. steelmakers, including Nucor, Steel Dynamics, and U.S. Steel, recently warned investors of poor first-quarter performance. In the aluminum sector, Century Aluminum's stock has risen about 2% this year, while Alcoa's shares have dropped over 18% due to its overseas production.
Gold and copper traders are assessing the potential global economic impact of Trump's tariffs. In Asian trading, spot gold prices remained stable, while copper futures declined. Although gold was mentioned as exempt in the briefing, it was not included in the official executive order, but future documents may address this.
