Shares of major steelmakers listed on China’s stock exchange fell on Tuesday, as concerns mounted about the potential impact on steel exports this year from new tariffs imposed by US President Donald Trump.
Trump sharply raised tariffs on steel and aluminium imports on Monday to 25 percent “without exceptions or exemptions” in a move to help struggling domestic industries but raise the risk of a multi-front trade war.
Baoshan Iron & Steel, HPIS, Angang Steel, Hunan Valin Steel, Shandong Iron & Steel and Jiangsu Shagang all fell between 0.3 percent and 2.84 percent.
Steel prices on the Shanghai Futures Exchange also fell more than 1 percent in morning trading.
Concerns have mounted that the new tariffs will add further uncertainty to China’s steel exports this year, which were already under threat from escalating trade tensions, although the impact on direct Chinese steel exports to the United States is limited given the small share of trade flows.
Last year, China’s direct steel exports to the United States amounted to 890,000 metric tons, just 0.8 percent of its total exports, which hit a nine-year high of 110.72 million tons, customs data showed.
China’s strong steel exports have helped offset sluggish domestic demand, which was hit by a protracted property slump and lower-than-expected consumption from the infrastructure sector last year.
