Donald Trump is adding another brick to the rising trade barriers. The U.S. president imposed 25 percent tariffs on all steel and aluminum imports to the U.S. on Monday night, putting a question mark over extractive industry activity in his key economic partners.
Tariffs on strategic industrial materials were already in place during Trump's first term (25% on steel and 10% on aluminum), but major US trading partners (including Canada, Mexico, Brazil, Australia and the EU) enjoyed concessions at the time to ease the impact of trade restrictions. Trump 2.0, however, puts the issue on a knife-edge - the “no exceptions and no exclusions” tariffs will go into effect on March 12.
The United States currently imports about 20% of the steel it uses. The share of materials supplied by the European Union has risen under President Joe Biden from 11% to 15%, increasing Europe's exposure to the risk of an economic slowdown in the face of international trade restrictions.
In a statement, Ursula von der Leyen expressed disappointment with Trump's tariff policies, stressing that tariffs, like taxes, will hurt both business and consumers. The European Commission announced a proportionate response from the European Union, but did not specify specifics.
EURUSD is rebounding 0.25% from its low after the announcement of steel and aluminum tariffs. A precise EU retaliatory plan could push the currency pair towards the 30-period EMA (light purple). Nevertheless, volatility today will depend mainly on Fed Chairman Jerome Powell's speech. Source: xStation5
Three Markets To Watch (20.04.2026)
Dollar Plummets After Opening of the Strait of Hormuz 💲📉 The Start of a Sharp Correction❓
Chart of the Day: Is the Yen Approaching a Breaking Point?
Morning Wrap: Trump Announces Ceasefire Between Israel and Lebanon
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
